Starbucks (NASDAQ:SBUX) shares plummeted more than 9% today after the company reported its Q2 results. While EPS of $0.74 and revenue of $8.7 billion came in better than the Street estimates of $0.65 and $8.4 billion, respectively, 2023 guidance remained unchanged, balancing better-than-expected Q2 results with uncertainty looking ahead.
Global comp sales grew 11% during the Q2, compared to the Street estimate of 7.5%, aided by a North American comp growth of 12% and International growth of 7%.
Analysts at RBC Capital see the potential for the more cautious outlook to weigh on shares in the very near term while acknowledging that H2 guidance could ultimately prove conservative. The analysts lowered their price target to $110 from $115 while reiterating their Sector Perform rating.