The 10-second takeaway
For the quarter ended Sep. 30 (Q4), Starbucks met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped.
Gross margins grew, operating margins grew, net margins shrank.
Starbucks reported revenue of $3.36 billion. The 27 analysts polled by S&P Capital IQ expected to see sales of $3.40 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $3.03 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.46. The 29 earnings estimates compiled by S&P Capital IQ predicted $0.45 per share. GAAP EPS of $0.46 for Q4 were 2.1% lower than the prior-year quarter's $0.47 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.6%, 20 basis points better than the prior-year quarter. Operating margin was 13.6%, 80 basis points better than the prior-year quarter. Net margin was 10.7%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.83 billion. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $14.89 billion. The average EPS estimate is $2.13.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 6,426 members out of 8,064 rating the stock outperform, and 1,638 members rating it underperform. Among 2,149 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,939 give Starbucks a green thumbs-up, and 210 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 $58.56.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Starbucks and has the following options: short JAN 2013 $47.00 puts on Starbucks. Motley Fool newsletter services recommend Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.