Starbucks Corp First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Starbucks Corp (NASDAQ:SBUX) will unveil its latest earnings on Thursday, January 26, 2012. Starbucks purchases, roasts and sells whole bean coffees, along with brewed coffees, Italian-style espresso beverages, cold blended beverages and a selection of accessories.

Starbucks Corp Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 48 cents per share, a rise of 6.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 50 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 48 cents during the last month. For the year, analysts are projecting profit of $1.83 per share, a rise of 20.4% from last year.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported net income of 37 cents per share against a mean estimate of profit of 36 cents, and the quarter before, the company exceeded forecasts by 2 cents with net income of 36 cents versus a mean estimate of profit of 34 cents.

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Wall St. Revenue Expectations: On average, analysts predict $3.29 billion in revenue this quarter, a rise of 11.5% from the year ago quarter. Analysts are forecasting total revenue of $13.01 billion for the year, a rise of 11.2% from last year’s revenue of $11.7 billion.

Analyst Ratings: 17 out of 25 analysts surveyed (68%) have a buy rating on Starbucks.. This is below the mean analyst rating of eight competitors, which average 69.1% buy ratings.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 28.5% to $358.3 million (47 cents a share) from $278.9 million (37 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 6.8% to $3.03 billion from $2.84 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 34.2% in the third quarter of the last fiscal year and 20.4% in the second quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue rose 12.3% in the third quarter of the last fiscal year from the year earlier, climbed 9.9% in the second quarter of the last fiscal year from the year-ago quarter and 8.4% in the first quarter of the last fiscal year.

Competitors to Watch: Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL), Panera Bread Company (NASDAQ:PNRA), Caribou Coffee Co., Inc. (NASDAQ:CBOU), Peet’s Coffee & Tea, Inc. (NASDAQ:PEET), McDonald’s Corporation (NYSE:MCD), Yum! Brands, Inc. (NYSE:YUM), Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), Tim Hortons Inc. (NYSE:THI), Wendy’s Arby’s Group Inc. (NYSE:WEN), Sonic Corporation (NASDAQ:SONC) and Darden Restaurants (NYSE:DRI).

Stock Price Performance: During November 21, 2011 to January 20, 2012, the stock price had risen $6.47 (15.5%) from $41.68 to $48.15. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 12, 2011 when shares rose for eight-straight days, rising 14.7% (+$5.29) over that span. It saw one of its worst periods between April 1, 2011 and April 11, 2011 when shares fell for seven-straight days, falling 4.7% (-$1.74) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com