Diamonds and Dogs

11/2/18

Starbucks (SBUX) brewing up a nice earnings report. Starbucks is jumping 10% after beating earnings estimates by 2 cents as revenue rose 10.6% to $6.3 billion ahead of estimates. Global comparable store sales increased 3%, driven by a 4% increase in average ticket. Americas and U.S. comparable store sales increased 4%. CAP and China comparable store sales increased 1%. The company also gave in line guidance for next year. Starbucks expects global comparable store sales growth near the lower end of its current 3% to 5% range with approximately 2,100 net new Starbucks stores globally. Plenty of upgrades with price targets of $68, $70, and $66 a share.

 Apple (AAPL) lower following earnings. Apple had another great quarter, but the stock is down 6% to a three month low. Here are some of the numbers- $14 billion in earnings; revenue up 19.6% to $62.9 billion. Apple shipped 46.9 million iphones. The average phone price rose from $730 to $793. Apple's ecosystem approach including an install base of over 1.3B devices globally is leading to record services revenue of $9.98 billion. Fourth quarter revenue should come in at around $90 billion up 50% from the third quarter. The cash positon stands at $237 billion. The company returned $23 billion to shareholders in the quarter in the form of share buybacks and dividends.  Impressive.