Quick Recap On Starbucks Corporation (NASDAQ:SBUX)
Starbucks Corporation (NASDAQ:SBUX) was marginally up by 0.09% after news of a price cut in the products of consumer goods provider J.M. Smucker Company.
As per the views and expectations of commodity traders the price cut was on the forefront after the slash of 45% in the prices of green coffee experienced in last May. The traders expect related companies also to cut the prices following the price cut by SJM.
Roaster companies in US has already incurred their share of higher inventory costs with the Robusta coffee futures on LIFFE nearly doubling to $2,672 per tone following a nine month rally. Similarly prices of Arabica coffee also more than doubled to a record 34 year high of $30890 per lb after an eleven month rally.
Sales volume dip can be attributable to the high inventory costs incurred by the Company.
Shares of Starbucks Corporation (NASDAQ:SBUX) was up $0.15 to $53.82 on a volume of 6.78 million shares as opposed to the average trading volume of 9.63 million shares. Starbucks’s shares has fallen 11.47% after the roaster company had reported its first quarter fiscal 2012 results. Hoever, the Company is up 16.71% year to date.
The Company had provided guidance well close to the estimates provided by analysts, $1.81 to $1.84. But it issued a lower than expected guidance of $0.45-$0.46 for the fourth quarter which was lower than the analyst estimate of $0.50.
Starbucks Corporation (Starbucks) is a roaster, marketer and retailer of specialty coffee in the world, operating in more than 50 countries.