In its upcoming report, Starbucks (SBUX) is predicted by Wall Street analysts to post quarterly earnings of $0.56 per share, reflecting a decline of 30% compared to the same period last year. Revenues are forecasted to be $9.35 billion, representing a year-over-year increase of 3%.
Over the last 30 days, there has been a downward revision of 10% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Bearing this in mind, let's now explore the average estimates of specific Starbucks metrics that are commonly monitored and projected by Wall Street analysts.
The average prediction of analysts places 'Net Revenues- Company-operated stores' at $7.70 billion. The estimate indicates a change of +3.4% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Net Revenues- Licensed stores' of $1.13 billion. The estimate suggests a change of +0.5% year over year.
Analysts' assessment points toward 'Net Revenues- Other' reaching $523.41 million. The estimate indicates a year-over-year change of +4.2%.
Analysts expect 'Net Revenues- Channel Development' to come in at $474.41 million. The estimate suggests a change of +1.9% year over year.
According to the collective judgment of analysts, 'Net Revenues- North America' should come in at $6.85 billion. The estimate indicates a change of +2.4% from the prior-year quarter.
It is projected by analysts that the 'Net Revenues- Company-operated stores- International' will reach $1.54 billion. The estimate points to a change of +8.5% from the year-ago quarter.
Based on the collective assessment of analysts, 'Net Revenues- Licensed stores- International' should arrive at $477.96 million. The estimate indicates a year-over-year change of +4.8%.
Analysts predict that the 'Net Revenues- Licensed stores- North America' will reach $670.80 million. The estimate indicates a year-over-year change of -0.4%.
The combined assessment of analysts suggests that 'Total Stores' will likely reach 41,207 . The estimate is in contrast to the year-ago figure of 40,199 .
The consensus estimate for 'Total Stores - International' stands at 22,691 . The estimate is in contrast to the year-ago figure of 21,775 .
The consensus among analysts is that 'Total Stores - North America' will reach 18,570 . The estimate compares to the year-ago value of 18,424 .
Analysts forecast 'Total Licensed stores EOP' to reach 19,520 . Compared to the present estimate, the company reported 19,181 in the same quarter last year.
View all Key Company Metrics for Starbucks here>>>
Shares of Starbucks have experienced a change of +1.9% in the past month compared to the +1.3% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), SBUX is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Starbucks Corporation (SBUX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
