Starbucks Corp. (SBUX) predicts 2Q earnings below analysts' outlook and expects profit to fall in 2008. The company warned Wall Street Wednesday that its second-quarter earnings would fall short of analysts' expectations due to the weak U.S. economy and the cost of its turnaround plan. The world's largest coffee retailer said it expects second-quarter earnings of 15 cents per share on a 12 percent revenue increase, down from earnings of 19 cents per share a year earlier. Starbucks has suffered due to a weakening economy and growing competition from rivals including McDonald's Corp. (MCD) and Dunkin' Donuts.
FusionIQ scored a FusionIQ timing SELL signal well in advance of this earnings warning. Currently its' FusionIQ scores still remain low, suggesting that SBUX is still an avoid even though there may be some temptation to buy the name given its sharp decline over the last several months