Starbucks (Nasdaq: SBUX) is expected to report Q4 earnings on Nov. 1. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Starbucks's revenues will grow 12.2% and EPS will grow 21.6%.
The average estimate for revenue is $3.40 billion. On the bottom line, the average EPS estimate is $0.45.
Revenue details
Last quarter, Starbucks logged revenue of $3.30 billion. GAAP reported sales were 13% higher than the prior-year quarter's $2.93 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Last quarter, EPS came in at $0.43. GAAP EPS of $0.43 for Q3 were 19% higher than the prior-year quarter's $0.36 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Recent performance
For the preceding quarter, gross margin was 56.2%, 160 basis points worse than the prior-year quarter. Operating margin was 13.3%, 100 basis points better than the prior-year quarter. Net margin was 10.1%, 60 basis points better than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $13.38 billion. The average EPS estimate is $1.79.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 6,413 members out of 8,051 rating the stock outperform, and 1,638 members rating it underperform. Among 2,133 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,921 give Starbucks a green thumbs-up, and 212 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Starbucks is outperform, with an average price target of $64.52.
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