What's Going On With Starbucks?

Coffee giant Starbucks Corporation SBUX released its fiscal first quarter earnings on Thursday, and the company's shares immediately took a 4 percent turn for the worst in after-hours trading.

Upon first glance, the company's earnings report appeared to show an impressive first quarter, but traders were spooked by a missed earnings outlook. However, some investors are taking this opportunity to buy, as the firm's financials suggest that the company is likely to have another profitable year.

The Nitty Gritty

Starbucks' adjusted earnings forecast for the second quarter was $0.38–$0.39, below analysts' expectations of $0.40. While that difference may not seem like much, it was enough to spook traders and push the company's share price lower. The company reported revenue of $5.37 billion, also below expectations of $5.39 billion.

Related Link: Mike Khouw's Starbucks Trade

Not All Bad

However, there were a lot of positives in Starbucks' report that many believe were overlooked. For one, the revenue miss still represented a 12 percent increase from last year's figures. The firm's investment in mobile technology also appeared to be paying off with almost 22 percent of its U.S. transactions made through Starbucks' own mobile payment app. The company also saw gift card sales increase and the firm's Christmas Blend packaged coffee sold out during the holiday season.

What To Believe

While it is true that Starbucks failed to meet Wall Street's expectations, the company's forward momentum is hard to ignore.

The firm is currently working to expand its operations in China and Asia, a largely untapped market that could represent a significant opportunity. Starbucks' results also reaffirmed that the company's mobile strategy is working, something that is likely to continue propelling the firm forward in the coming year.

For those who are willing to look beyond the missed estimates, Starbucks could be a worthwhile long-term investment.