Here’s the Club’s condensed earnings reaction for Starbucks, Ford Motor and Qualcomm. Starbucks Quarterly commentary Starbucks (SBUX) issued fiscal 2023 first-quarter results that missed Wall Street’s expectations Thursday, weighed down by disappointing same-store sales in China, which were down 29% in the quarter. The stock lost roughly 1.5% in after hours trading. However, interim CEO Howard Schultz indicated that traffic trends in the current quarter offer are improving sequentially, offering a reason for optimism. With Starbucks’ U.S. business showing impressive growth amid concerns about consumer spending, the Club’s thesis on the coffee chain remains intact. Guidance Starbucks’ fiscal 2023 guidance remains unchanged, CFO Rachel Ruggeri said on the company’s earnings call, despite continued headwinds related to China’s Covid recovery. While management expects China’s contribution to operating income will be lower than originally assumed in its guidance, that implies resiliency in other parts of Starbucks’ business. Starbucks’s guidance has called for global same-store sales to grow near the high end of their 7% to 9% target. Additionally, the company has said 2023 full-year revenues will grow between 10% and 12% on a year-over-year basis. Ford Motor Quarterly commentary Ford Motor (F) reported a messy fourth quarter Thursday, with adjusted earnings per share coming in well below Street expectations and overshadowing a topline revenue beat. While CEO Jim Farley lamented the automaker’s execution issues and pledged to fix them going forward, there’s no getting around the fact that this was a disappointing result from the Club holding. Ford shares understandably fell more than 6% in extended trading, erasing most of the stock’s 8% week-to-date gains. At least, the company is willing to pay its shareholders as they wait for better execution. Ford announced Thursday evening it will pay shareholders a supplemental dividend of 65-cent per share, made possible by its strong free cash flow and nearly complete monetization of its stake in electric vehicle maker Rivian Automotive (RIVN). This dividend yield by itself is about 4.5% and is a nice one-time complement to the regularly scheduled quarterly payment of 15-cent per share. F 5D mountain Ford (F) 5-day performance Guidance Ford said Thursday it expects full-year adjusted earnings before interest and taxes to total between $9 billion and $11 billion. The midpoint of that guidance is $10 billion, which missed analysts’ forecasts of $10.22 billion in full-year adjusted EBIT, according to FactSet. The automaker also said it expects full-year adjusted free cash flow guidance to be about $6 billion. Ford said a likely “mild recession in the U.S.” is baked into its guidance. Qualcomm Quarterly commentary Qualcomm ‘s (QCOM) fiscal 2023 first-quarter earnings topped analysts’ estimates Thursday, despite lighter-than-projected revenues in the three months ended Dec. 25. Shares of the semiconductor firm fell more than 2% in extended trading. The stock’s slide began in earnest after the company’s conference call got underway and CEO Cristiano Amon warned that weak smartphone demand would keep handset chip inventories elevated through at least the first half of calendar 2023. Also, a new wrinkle is that Qualcomm is now seeing weakness from some of its internet of things and industrial customers. A chipmaker can rally if the trough in its earnings is here, but uncertainty around the timing of when all the excess inventory will be flushed out gives us pause. On guidance, Qualcomm said it expects second-quarter sales between $8.7 billion and $9.5 billion, which at the midpoint of $9.1 billion is short of the $9.55 billion analysts expected, according to FactSet. Its adjusted earnings per share forecast between $2.05 and $2.25 also missed expectations of $2.29. The sales estimate breakdown of the company’s QCT (Qualcomm CMDA Technologies) and QTL (Qualcomm Technology Licensing) segments highlight the weakness. (Jim Cramer’s Charitable Trust is long QCOM, F and SBUX. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
The American Coffeehouse company, Starbucks logo is displayed outside one of its stores on November 23, 2022 in Rugeley, England.
Nathan Stirk | Getty Images
Here’s the Club’s condensed earnings reaction for Starbucks, Ford Motor and Qualcomm.