STARBUCKS HITS RECORD REVENUE, STOCK JUMPS NEARLY 10%
Starbucks is currently trading at 64.13-higher by 9.5% as compared to the previous closing. In Pre-market trading on Friday, the stock was traded as high as 7.35% up on yesterday’s close. The stock has continued gaining after the opening bell.
Starbucks reported its Q4 earnings after the market closed on Thursday. The company reported adjusted EPS of 62 cents, above the market estimates of 60 cents. Revenue was also above the market expectation.
In the U.S. and Americas, sales at stores open for at least a year grew 4% during Starbucks’ fiscal fourth quarter, beating markets estimate of 2.7%. It was the company’s strongest same-store sales growth in the U.S. in five quarters, the CEO of Starbucks announced during an earnings call on Thursday. The same-store sales growth helped driving the coffee company’s revenue to a fresh record of $6.3 billion, up 10.6% from $5.7 billion during the same time last year.
In the fourth quarter, Starbucks posted better-than-expected same-store sales across all four of its major markets. Global same-store sales during the fiscal fourth quarter rose 3%-above the market expectations of 2.3%.
On the technical front, the RSI is currently at 77.13% and suggests that the market can move in the upward direction. The current price is above the MA5. The %K has crossed the %D from below to the upside at around 72% and suggests that the market may head upwards
Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-LIMIT BUY AT 63.80 TAKE PROFIT AT 64.40 STOP LOSS AT 63.50