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Starbucks Corp Earnings: Profits Climb By Double Figures Again

January 26 2012 Tweet Email This

S&P 500 (NYSE:SPY) component Starbucks Corporation (NASDAQ:SBUX) reported its results for the first quarter. Starbucks purchases, roasts and sells whole bean coffees, along with brewed coffees, Italian-style espresso beverages, cold blended beverages and a selection of accessories.

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Starbucks Earnings Cheat Sheet for the First Quarter

Results: Net income for Starbucks Corporation rose to $382.1 million (50 cents per share) vs. $346.6 million (45 cents per share) in the same quarter a year earlier. This marks a rise of 10.2% from the year earlier quarter.

Revenue: Rose 16.4% to $3.44 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: SBUX beat the mean analyst estimate of 49 cents per share. It beat the average revenue estimate of $3.29 billion.

Quoting Management: “Starbucks continues to expand our global footprint and accelerate the innovation and momentum in our CPG business,” said Howard Schultz, Starbucks chairman, president and ceo. “Our first quarter performance represents the highest quarterly earnings in the history of the company, and is a testament to the hard work and commitment of our 200,000 partners (employees) around the world. Starbucks is firing on all cylinders and taking full advantage of the many global opportunities that lie ahead,” Schultz added.

Key Stats:

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 28.5% and in the third quarter of the last fiscal year, the figure rose 34.2%.

Revenue has risen the past four quarters. Revenue increased 6.8% to $3.03 billion in the fourth quarter of the last fiscal year. The figure rose 12.3% in the third quarter of the last fiscal year from the year earlier and climbed 9.9% in the second quarter of the last fiscal year from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by one cent in the fourth quarter of the last fiscal year and by 2 cents in the third quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 41 cents a share to 38 cents over the last ninety days. For the fiscal year, the average estimate has moved up from $1.81 a share to $1.83 over the last ninety days.

Competitors to Watch: Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL), Panera Bread Company (NASDAQ:PNRA), Caribou Coffee Co., Inc. (NASDAQ:CBOU), Peet’s Coffee & Tea, Inc. (NASDAQ:PEET), McDonald’s Corporation (NYSE:MCD), Yum! Brands, Inc. (NYSE:YUM), Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), Tim Hortons Inc. (NYSE:THI), Wendy’s Arby’s Group Inc. (NYSE:WEN), Sonic Corporation (NASDAQ:SONC) and Darden Restaurants (NYSE:DRI).