Starbucks (SBUX) will report Q3 earnings after the market closes with a conference call to follow at 5 PM ET.

Current Cap IQ consensus estimates Q3 EPS of $0.73 (vs $0.62 last year) on revs of $6.67 bln (+6% Y/Y). Comps estimate is +4%.

SBUX will provide Q4 guidance in the press release

  • Current Cap IQ Consensus estimates Q4 EPS of $0.71 (vs $0.62 last year) on revs of $6.64 bln (+5% Y/Y) w/ comps +2.8%.

  • Global comparable store sales increased 3% (vs 3.1% estimate), driven by a 3% increase in average ticket

  • Americas and U.S. comparable store sales increased 4%, driven by a 4% increase in average ticket

  • China/Asia Pacific comparable store sales increased 2%, driven by a 2% increase in average ticket; China comparable store sales increased 3%, with comparable transactions down 1%

TECHS:

SBUX has a $110 bln market cap and trades at a forward P/E of 30.7x vs DNKN (27x) and MCD (26x)


Starbucks beats by $0.05, beats on revs; guides FY19 EPS above consensus (90.98 +0.33)

  • Reports Q3 (Jun) earnings of $0.78 per share, $0.05 better than the S&P Capital IQ Consensus of $0.73; revenues rose 8.1% year/year to $6.82 bln vs the $6.67 bln S&P Capital IQ Consensus.

    • Global comparable store sales increased 6%, driven by a 3% increase in average ticket and a 3% increase in comparable transactions

    • Americas comparable store sales increased 7%, driven by a 4% increase in average ticket and a 3% increase in transactions; U.S. comparable store sales increased 7%, with transactions up 3%

    • China/Asia Pacific comparable store sales increased 5%, driven by a 3% increase in average ticket and a 2% increase in transactions; China comparable store sales increased 6%, with transactions up 2%

    • Non-GAAP operating margin of 18.3% declined 20 basis points compared to the prior year.

  • Co issues upside guidance for FY19, sees EPS of $2.80-2.82, excluding non-recurring items, vs. $2.80 S&P Capital IQ Consensus.

    • Global comparable store sales growth of approximately 4% (previously 3% to 4%)

    • Consolidated GAAP revenue growth of approximately 7% (previously 5% to 7%)


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