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How much surprise in Starbucks' surprise warning today?

Posted by: Aaron Pressman on April 23, 2008

Starbucks (Symbol: SBUX) came out with its fiscal second quarter results a bit earlier than expected today and it wasn’t because folks were flocking to the six Clover s1 locations. Nope, instead plummetting consumer traffic, particularly in Florida and California, hit the company’s bottom line. Analysts were expecting 21 cents a share of net income for the three months ended March 30 but SBUX CEO Howard Schultz says it was more like 15 cents. Revenue climbed 12% versus the 17% analysts predicted. Starbucks was scheduled to release its results a week from today.

But, as noted previously a few times, this is one beat up stock, which, though currently suffering, still produces a lot of cash and has decent growth prospects overseas. In after-hours trading Starbucks shares fell only about $2 or so to $16.

Meanwhile, it’s looking like a disappointing afternoon across the market. Apple (AAPL) and (AMZN) reported excellent past quarter results but offered weaker than expected guidance about upcoming quarters. Both are trading down modestly in after hours dealing.

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Bloomberg Businessweek’s Ben Steverman focuses on the latest moves in financial markets and emerging trends in stocks, bonds, and funds, always with an eye toward giving readers a better understanding of the sometimes confusing and often chaotic world of money. Standard & Poor’s senior index analyst Howard Silverblatt will also provide his take on companies’ finances and the markets. Voted one of the “Top 100 Finance Blogs” in 2007.

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