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Originally published Thursday, July 26, 2012 at 1:38 PM

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Starbucks lowers outlook, shares slump

Starbucks Corp. on Thursday reported net income that fell short of Wall Street expectations in the fiscal third quarter, and the company's shares slumped after it lowered its outlook for the current quarter.

The Associated Press

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NEW YORK —

Starbucks Corp. on Thursday reported net income that fell short of Wall Street expectations in the fiscal third quarter, and the company's shares slumped after it lowered its outlook for the current quarter.

The Seattle-based coffee giant cited the challenging global economy for the more pessimistic outlook. It shares fell 9 percent in after-hours trading.

Net income rose 19 percent, but was still shy of analyst expectations.

The company said global revenue at cafes open at least a year rose 6 percent, driven by growth in China and Asia, while the region encompassing Europe, the Middle East and Africa was flat. The figure rose 7 percent in the Americas.

Starbucks said customers bought more and spent more per visit.

For the three months ended July 1, the company said it earned $333.1 million, or 43 cents per share. That's compared with $279.1 million, or 36 cents per share, a year ago.

Total revenue rose 13 percent to $3.3 billion.

Analysts on average expected a profit of 45 cents per share on revenue of $3.34 billion.

For the current quarter, Starbucks cut its profit outlook to 44 cents to 45 cents per share, when analysts were predicting 48 cents per share.

Shares dropped $4.79, or 9 percent, to $47.61 in after-hours trading. During the trading day, shares had gained $1.99, or 4 percent, close at $52.40.

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