On May 3, Motley Fool Stock Advisor recommendation Starbucks (NASDAQ:SBUX) released Q2 2006 earnings for the period ended April 2.
- Margins improved compared with last year's second quarter.
- The balance sheet is still strong. Cash balances declined because of share repurchases in the past 12 months.
- Sales and earnings per share jump on continued store growth and same-store-sales increases. Sales and earnings per share also beat estimates.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2006 |
Q2 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$ 1,870,000 |
$1,885,882 |
$1,518,716 |
24.2% |
|
Net Profit |
-- |
$ 127,316 |
$100,461 |
26.7% |
|
EPS |
$ 0.14 |
$0.16 |
$0.12 |
33.3% |
|
Diluted Shares |
794,613 |
828,062 |
(4%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2006 |
Q2 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
59.65% |
58.60% |
1.05 |
|
Op. Margin |
10.71% |
10.36% |
0.35 |
|
Net Margin |
6.75% |
6.62% |
0.13 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets | Q2 2006 | Q2 2005 | Change |
|---|---|---|---|
Cash + ST Invest. | $445,448 | $667,521 | (40.7%) |
Accounts Rec. | $190,452 | $151,638 | 25.6% |
Inventory | $456,215 | $406,073 | 12.3% |
Liabilities | Q2 2006 | Q2 2005 | Change |
|---|---|---|---|
Accounts Pay. | $230,060 | $181,754 | 26.6% |
Long-Term Debt | $2,491 | $3,246 | (23.3%) |
Cash Flow Highlights
Q2 2006 | Q2 2005 | Change | |
|---|---|---|---|
Cash From Ops. | $761,992 | $577,544 | 31.9% |
Capital Expend. | $310,331 | $311,454 | (0.4%) |
Free Cash Flow | $451,661 | $260,547 | 73.4% |
Find out why Fools always follow the money.
Related Companies:
- Peet'sCoffee & Tea (NASDAQ:PEET)
- Caribou Coffee (NASDAQ:CBOU)
- GreenMountainCoffee Roasters (NASDAQ:GMCR)
- McDonald's (NYSE:MCD)
- DiedrichCoffee (NASDAQ:DDRX)
Related Foolishness:
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.comfor more of our in-depth discussion of what the numbers mean.
At the time of publication, Nathan Parmelee had positions in Starbucks. Fool rules are here.
