Here’s why Starbucks shares can rally after a quarterly earnings miss

News Snapshot:

Starbucks on Tuesday reported first-quarter earnings and sales that, technically, missed Wall Street estimates — but it was hardly a surprise to investors, including us. Revenue for the three months ended Dec. 31 totaled $9.43 billion, below the $9.59 billion expected by analysts, according to LSEG. On a year-over-year basis, sales rose 8.2%. Starbucks' adjusted earnings per share of 90 cents missed the 93-cent estimate, LSEG data showed. In the year-ago period, the coffee chain earned an adjusted 75 cents per share. Bottom line As Jim Cramer had warned , Starbucks came up short amid a slowdown in business due...