Starbucks First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Starbucks (NASDAQ:SBUX) will unveil its latest earnings tomorrow, Thursday, January 24, 2013. 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 Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 57 cents per share, a rise of 14% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 56 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 57 cents during the last month. Analysts are projecting profit to rise by 20.1% compared to last year’s $2.15.

Last quarter, the company came in at net income of 46 cents per share against a mean estimate of profit of 45 cents per share, beating estimates after missing them in the previous quarter. In the third quarter of the last fiscal year, it missed forecasts by 2 cents.

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Stock Price Performance: Between October 22, 2012 and January 17, 2013, the stock price rose $9.20 (20.3%), from $45.30 to $54.50. The stock price saw one of its best stretches over the last year between March 12, 2012 and March 27, 2012, when shares rose for 12 straight days, increasing 10.1% (+$5.15) over that span. It saw one of its worst periods between October 16, 2012 and October 23, 2012 when shares fell for six straight days, dropping 8.1% (-$3.99) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 11.6% in revenue from the year-earlier quarter to $3.84 billion.

Analyst Ratings: With 20 analysts rating the stock a buy, none rating it a sell and seven rating the stock a hold, there are indications of a bullish stance by analysts.

Here’s how Starbucks traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 13.7% over the last four quarters.

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 18.5% in the second quarter of the last fiscal year and 19.3% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 0.1% to $358.7 million (46 cents a share) from $358.3 million (47 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 11% to $3.36 billion from $3.03 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.9 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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