S&P 500 (NYSE:SPY) component Starbucks (NASDAQ:SBUX) will unveil its latest earnings tomorrow, Thursday, July 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 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 25% 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 46 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 20.4% compared to last year’s $1.83.
Past Earnings Performance: Last quarter, the company beat estimates by one cent, coming in at profit of 40 cents a share versus the estimate of net income of 39 cents a share. It marked the fourth straight quarter of beating estimates.
Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?
A Look Back: In the second quarter, profit rose 18.5% to $309.9 million (40 cents a share) from $261.6 million (34 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 14.7% to $3.2 billion from $2.79 billion.
Wall St. Revenue Expectations: Analysts are projecting a rise of 13.7% in revenue from the year-earlier quarter to $3.33 billion.
Stock Price Performance: Between April 25, 2012 and July 24, 2012, the stock price fell $7.57 (-13.04%), from $58.05 to $50.48. 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 May 11, 2012 and May 18, 2012 when shares fell for six straight days, dropping 6.3% (-$3.48) over that span.
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 28.5% in the fourth quarter of the last fiscal year and 10.2% in the first quarter before increasing again in the second quarter.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 12.3% in the third quarter of the last fiscal year, 6.8% in the fourth quarter of the last fiscal year and 16.4% in the first quarter before increasing again in the second quarter.
Analyst Ratings: With 20 analysts rating the stock a buy, none rating it a sell and six rating the stock a hold, there are indications of a bullish stance by analysts.
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 by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Hot Additional Stories: