Starbucks Says Earnings Will Beat Forecasts

Starbucks Corp. said earnings for its fiscal first quarter will exceed earlier expectations. The Seattle-based company, which operates or licenses nearly 2,700 coffee shops worldwide, expects to post quarterly net earnings of 18 cents a share, 2 cents higher than the Wall Street consensus estimate of 16 cents, Starbucks Chairman Howard Schultz said at a company conference. In last year’s first quarter ended Jan. 2, Starbucks reported earnings of $26.7 million, or 14 cents a share, adjusting for a 2-for-1 stock split in spring of 1999. Analysts said the announcement signaled brighter prospects for the company and its share price, noting that it will mark the first time in five years that Starbucks would beat Wall Street’s quarterly forecast. “They tend to come in right on the number,” said analyst John Glass at Deutsche Banc Alex. Brown. “We think there is a significant change in momentum here.” Starbucks shares rose $1.44 to close at $26 on Nasdaq.