The 10-second takeaway
For the quarter ended June 30 (Q3), Starbucks met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share increased significantly.
Margins expanded across the board.
Starbucks tallied revenue of $3.74 billion. The 26 analysts polled by S&P Capital IQ predicted sales of $3.72 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $3.30 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 $0.55. The 27 earnings estimates compiled by S&P Capital IQ predicted $0.53 per share. GAAP EPS of $0.55 for Q3 were 28% higher than the prior-year quarter's $0.43 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%, 110 basis points better than the prior-year quarter. Operating margin was 14.7%, 140 basis points better than the prior-year quarter. Net margin was 11.2%, 110 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.81 billion. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $14.90 billion. The average EPS estimate is $2.20.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,746 members out of 8,380 rating the stock outperform, and 1,634 members rating it underperform. Among 2,411 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 2,238 give Starbucks a green thumbs-up, and 173 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 $69.00.
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