Starbucks Catches Analysts Sleeping Again
Starbucks (NAS: SBUX) reported earnings on Jan. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 1 (Q1), Starbucks beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share grew.
Margins dropped across the board.
Starbucks recorded revenue of $3.44 billion. The 21 analysts polled by S&P Capital IQ anticipated a top line of $3.29 billion. Sales were 16% higher than the prior-year quarter's $2.95 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.50. The 25 earnings estimates compiled by S&P Capital IQ forecast $0.48 per share on the same basis. GAAP EPS of $0.47 for Q1 were 11% higher than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 56.5%, 280 basis points worse than the prior-year quarter. Operating margin was 14.9%, 100 basis points worse than the prior-year quarter. Net margin was 11.1%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.16 billion. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $13.27 billion. The average EPS estimate is $1.84.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 5,866 members out of 7,514 rating the stock outperform, and 1,649 members rating it underperform. Among 2,061 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,850 give Starbucks a green thumbs-up, and 211 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Starbucks is outperform, with an average price target of $48.70.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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