Starbucks Earnings: Here’s Why Investors Like These Results

Starbucks Corp. (NASDAQ:SBUX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 6.21%.

Starbucks Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 27.91% to $0.55 in the quarter versus EPS of $0.43 in the year-earlier quarter.

Revenue: Rose 13.24% to $3.74 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Starbucks Corp. reported adjusted EPS income of $0.55 per share. By that measure, the company beat the mean analyst estimate of $0.53. It beat the average revenue estimate of $3.72 billion.

Quoting Management: “Starbucks Q3 results represent the best across-the-board third-quarter performance in our 42-year history,” said Howard Schultz, chairman, president and CEO. “Our more than 19,000 store global footprint, our fast-growing CPG presence and our best-in-class digital, card, loyalty and mobile capabilities are creating a ‘flywheel’ effect elevating the relevancy of all things Starbucks, and driving profitability.”

Key Stats (on next page)…

Revenue increased 5.21% from $3.56 billion in the previous quarter. EPS increased 7.84% from $0.51 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.57 and has not changed. For the current year, the average estimate has moved up from a profit of $2.17 to a profit of $2.19 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More from The Cheat Sheet