Starbucks Gets Boost From Holiday Sales

Starbucks Corp. said Wednesday that its fiscal first-quarter earnings rose 20%, driven by strong holiday sales of eggnog lattes and other coffee drinks.

The world’s largest specialty coffee retailer also boosted its profit target for the year, saying it expected that earnings would be 68 cents to 70 cents a share, 5 cents more than previously forecast.

Starbucks shares surged nearly 6%, or $1.82, in after-hours trading after falling 34 cents, or 1.1%, to $31.36 in regular trading. The company released its earnings after the markets closed.

For the 13 weeks ended Jan. 1, Seattle-based Starbucks earned $174 million, or 22 cents a share, up from $145 million, or 17 cents, a year earlier.

Revenue for the latest quarter increased 22% to $1.93 billion from $1.59 billion in the comparable period last year.

The consensus forecast of analysts surveyed by Thomson Financial was 20 cents a share on revenue of $1.93 billion.