Starbucks Corp Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Starbucks Corp (NASDAQ:SBUX) will unveil its latest earnings on Thursday, November 3, 2011. 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 36 cents per share, a decline of 2.7% 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 37 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 36 cents during the last month. For the year, analysts are projecting profit of $1.52 per share, a rise of 18.8% from last year.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the third quarter, it reported net income of 36 cents per share versus a mean estimate of 34 cents. Two quarters ago, it reported profit of 34 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 3.9% in revenue from the year-earlier quarter to $2.95 billion.

Analyst Ratings: 14 out of 24 analysts surveyed (58.3%) have a buy rating on Starbucks.. This is below the mean analyst rating of eight competitors, which average 65.3% buy ratings.

A Look Back: In the third quarter, profit rose 34.2% to $279.1 million (36 cents a share) from $207.9 million (27 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 12.3% to $2.93 billion from $2.61 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 20.4% in the second quarter and 43.5% in the first quarter.

Revenue has gone up for three straight quarters. It rose 9.9% in the second quarter from the year earlier and 8.4% in the first quarter.

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 August 4, 2011 to October 28, 2011, the stock price had risen $5.73 (15.6%) from $36.77 to $42.50. The stock price saw one of its best stretches over the last year between January 12, 2011 and January 25, 2011 when shares rose for nine-straight days, rising 4.5% (+$1.44) 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% (-$1.75) over that span. Shares are up $10.72 (+33.7%) year to date.

(Source: Xignite Financials)

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.