Analysts on Wall Street project that Starbucks (SBUX) will announce quarterly earnings of $0.58 per share in its forthcoming report, representing a decline of 15.9% year over year. Revenues are projected to reach $9.63 billion, increasing 2.5% from the same quarter last year.
The current level reflects a downward revision of 1.5% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
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 typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some Starbucks metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts expect 'Net Revenues- Company-operated stores' to come in at $7.95 billion. The estimate indicates a change of +2.1% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Net Revenues- Licensed stores' of $1.16 billion. The estimate points to a change of +2% from the year-ago quarter.
Analysts forecast 'Net Revenues- Other' to reach $526.42 million. The estimate indicates a year-over-year change of +10.4%.
It is projected by analysts that the 'Net Revenues- Channel Development' will reach $475.27 million. The estimate indicates a year-over-year change of +8.9%.
The combined assessment of analysts suggests that 'Net Revenues- North America' will likely reach $7.12 billion. The estimate suggests a change of +0.7% year over year.
Based on the collective assessment of analysts, 'Net Revenues- Company-operated stores- International' should arrive at $1.53 billion. The estimate indicates a change of +8.2% from the prior-year quarter.
Analysts predict that the 'Net Revenues- Licensed stores- International' will reach $464.78 million. The estimate indicates a year-over-year change of +7.3%.
The consensus among analysts is that 'Net Revenues- Licensed stores- North America' will reach $707.25 million. The estimate suggests a change of +0.7% year over year.
According to the collective judgment of analysts, 'Total Stores' should come in at 41,241 . Compared to the present estimate, the company reported 40,576 in the same quarter last year.
The consensus estimate for 'Total Stores - International' stands at 22,876 . The estimate is in contrast to the year-ago figure of 22,039 .
The average prediction of analysts places 'Total Stores - North America' at 18,362 . The estimate is in contrast to the year-ago figure of 18,537 .
Analysts' assessment points toward 'Total Licensed stores EOP' reaching 19,578 . The estimate compares to the year-ago value of 19,251 .
View all Key Company Metrics for Starbucks here>>>
Over the past month, shares of Starbucks have returned +13.3% versus the Zacks S&P 500 composite's +0.6% change. Currently, SBUX carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Starbucks Corporation (SBUX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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