The 10-second takeaway
For the quarter ended Dec. 30 (Q1), Starbucks met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Margins grew across the board.
Starbucks logged revenue of $3.80 billion. The 27 analysts polled by S&P Capital IQ expected to see a top line of $3.84 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $3.44 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 $0.57. The 30 earnings estimates compiled by S&P Capital IQ predicted $0.57 per share. GAAP EPS of $0.57 for Q1 were 14% higher than the prior-year quarter's $0.50 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 57.3%, 80 basis points better than the prior-year quarter. Operating margin was 15.2%, 30 basis points better than the prior-year quarter. Net margin was 11.4%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.59 billion. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $14.98 billion. The average EPS estimate is $2.15.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,568 members out of 8,202 rating the stock outperform, and 1,634 members rating it underperform. Among 2,225 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 2,035 give Starbucks a green thumbs-up, and 190 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 $59.39.
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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 recommends Starbucks. The Motley Fool owns shares of 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.