Starbucks and Visa released their earnings reports for third third fiscal quarters after closing bell tonight. Starbucks posted record third quarter non-GAAP earnings of 42 cents per share on revenue of $4.9 billion, an 18% year over year increase. Analysts had been expecting earnings of 41 cents per share on $4.86 billion in revenue.
Visa posted adjusted earnings of 74 cents per share on revenue of $3.5 billion. Analysts had been expecting earnings of 58 cents per share on $3.4 billion in revenue.
Key metrics from Starbucks’ earnings report
Starbucks’ GAAP earnings rose 21% year over year to a third quarter record of 41 cents per share. The coffee store chain reported a 7% increase in comparable store sales globally, including an 8% increase in the Americas and 11% in China and the Asia Pacific region. Globally, traffic was up 4%. The company opened 431 net new stores during the quarter, bringing the total count to 22,519. Comparable store customer transactions increased by almost 18 million in the U.S. and more than 23 million globally.
Starbucks also increased its guidance for the full year but maintained its fourth quarter guidance. The company now expects GAAP earnings of between $1.77 and $1.78 per share for the full year and fourth quarter GAAP earnings of between 38 cents and 39 cents per share. Management projects full year non-GAAP earnings of between $1.57 and $1.58 per share and fourth quarter non-GAAP earnings of 42 cents to 43 cents per share.
As of this writing, shares of Starbucks were up 2.55% at $58 per share in after-hours trades.
Key metrics from Visa’s earnings report
Visa’s reported earnings were 69 cents per share. The credit card company reported an 11% increase in payments volume for the three months ending on March 31, bringing them to $1.2 trillion. On a constant dollar basis for the three months ending on June 30, Visa also marked an 11% growth rate in payments volume. Total processed transactions for the three months ending June 30 rose 8% to 19 billion. Cross-border volume growth increased 8% for the three months ending June 30. Service revenues rose 9% to $1.6 billion.
Visa still expects a full year operating margin in the mid-60s and more than $6 billion in annual free cash flow. The company updated its outlook on other metrics, like net revenue growth. The payments processor expects revenue growth in the low double digits in constant dollar with about a foreign currency impact of 2.5 percentage points. The company expects adjusted earnings growth in the mid-teens range.
As of this writing, shares of Visa were up 2.9% at $75.88 per share.
