Starbucks Corp (SBUX - Analyst Report), riding on strong holiday sales and continued global expansion, rose to an all-time high in after-hours trading Thursday after reporting first-quarter earnings in line with Wall Street estimates.

Shares rose more than 3.5 percent in trading after the closing bell as investors reacted to reports of record revenue. Sales rose 13 percent to $4.8 billion compared with $4.2 billion the year before, on par with analyst estimates.

Expanded options for the holiday season, a new mobile rewards program and significant expansion in China and Japan drove positive reactions to Starbucks’ earnings after the close. The strong results accompanied guidance for 2015 in the range of analyst estimates.

Net income at the world’s largest coffee-shop chain grew to $983.1 million, or $1.30 per share, compared with $540.7 million, or 71 cent per share, a year earlier. Adjusted for non-recurring gains, however, income rose to the 80 cents per share projected by the Zacks Consensus Estimate.

Season’s Greetings

A new in-store holiday experience that included an expanded assortment of Starbucks Cards, new holiday food, beverage and merchandise offerings “resonated powerfully with our customers,” Starbucks chairman, president and CEO Howard Schultz said in a press release. Offerings such as the chestnut praline latte and the opportunity to win Starbucks for life “drove both increased traffic and tremendous excitement in our stores and around the Starbucks brand,” Schultz said.

The numbers back up Schultz’s holiday cheer. Dollars loaded on Starbucks Cards soared to a record $1.6 billion, a 17 percent increase year-over-year. Starbucks gift cards were a popular gift this year, with 1 in 7 Americans receiving the cards in the first quarter, the company said.

Sales at stores open at least 13 months advanced 5 percent globally, topping the consensus analyst estimate of 4.7 percent. The company opened 512 net new stores in the first quarter and expects to complete its ongoing acquisition of Starbucks Japan in the first half of calendar year 2015. 

Bottom Line

While adjusted earnings matched Wall Street’s expectations, Starbucks hedged its profit targets for both the next quarter and the full year. In the second quarter, the company expects a profit of 64 cents to 65 cents per share, several cents below the 68 cents analysts had been expecting. For the year ending in September, Starbucks forecast adjusted profit between $3.09 per share to $3.13 per share, while analysts projected $3.13.

Before the release, Starbucks shares closed up $1.47, or 1.8 percent, at $82.76. The company currently has a Zacks Rank #3 (Hold).