tarbucks Corporation, the coffee Seattle-based coffeehouse chain known for its signature roasts, light bites has announced that its Board of Directors has authorized the repurchase of an additional 50 million shares of the Company’s common stock under its ongoing share repurchase program.
This authorization has no expiration date and is in addition to the 11 million shares that remained available for repurchase as of June 28, 2015 under an existing authorization.
“Since the Company’s share repurchase program was authorized in September of 2001, Starbucks has repurchased more than 430 million shares at a cost of $7.4 billion under authorizations through June 28, 2015,” said Scott Maw, Starbucks chief financial officer.
“This additional authorization reflects the ongoing strength of Starbucks balance sheet and operating cash flow, which allows us to support our global growth and return value to our shareholders through the payment of quarterly dividends and share repurchases,” the company stated.
Shares will continue to be repurchased in the open market at times and amounts considered appropriate by the Company based on several factors including price and market conditions.
The Company may also repurchase shares through trading plans entered into pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934.
The coffee chain announcement came amidst reported quarterly earnings and revenue that beat analysts’ expectations on Thursday.
Starbucks posted fiscal third-quarter earnings of 42 cents per share on $4.88 billion in revenue. Analysts forecast Starbucks would report earnings of 41 cents a share on $4.86 billion in revenue, according to a consensus estimate from Thomson Reuters.
After the earnings announcement, the company’s shares rose more than 5 percent in extended-hours trading. The coffee giant is trading well above its $57 all-time high at current extended-hours levels.
Starbucks expects full-year revenue growth of 16 to 18 percent. Global comparable-store-sales growth will remain in the mid-single digits.
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