Starbucks Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Starbucks (NASDAQ:SBUX) will unveil its latest earnings on Thursday, November 1, 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 Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 45 cents per share, a rise of 21.6% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 17.1% compared to last year’s $1.78.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the third quarter, the company reported profit of 43 cents per share versus a mean estimate of net income of 45 cents per share. In the second quarter, the company beat estimates by one cent.

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A Look Back: In the third quarter, profit rose 19.3% to $333.1 million (43 cents a share) from $279.1 million (36 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 12.7% to $3.3 billion from $2.93 billion.

Wall St. Revenue Expectations: Analysts predict a rise of 11.9% in revenue from the year-earlier quarter to $3.39 billion.

Stock Price Performance: Between September 28, 2012 and October 26, 2012, the stock price dropped $4.84 (-9.5%), from $50.71 to $45.87. 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.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 10.2% in the first quarter and 18.5% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 6.8% in the fourth quarter of the last fiscal year, 16.4% in the first quarter and 14.7% in the second quarter before increasing again in the third quarter.

Analyst Ratings: With 18 analysts rating the stock a buy, none rating it a sell and eight rating the stock a hold, there are indications of a bullish stance by analysts.

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

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