What To Expect From Starbucks Corporation (NASDAQ:SBUX)?

Posted by admin October 30, 2013 0 Comment 976 views


The largest coffee retailer in the world, Starbucks Corporation (NASDAQ:SBUX) is expected report a rise of 26% in for the quarter that ended September on growing margins and an improvement in same store sales. For the Fiscal Q4, on an average, analysts have projected and net income of $452.6M, or 60 cents per share, in comparison to $359M, or 46 cents/share in the same quarter of 2012. Revenue is projected to increase to $3.81B from $3.36B in the fiscal 2012 Q4.

A global dip in global coffee prices and an increase in more-expensive items on the menu is expected to bring about an improvement in Starbucks Corporation (NASDAQ:SBUX)’s profit margins. In 2013, the company started selling La Boulange pastry products as well as a line of fresh juices from Evolution Fresh at its cafe locations. This will help in bringing up the average customer ticket.

Other measures

While Starbucks Corporation (NASDAQ:SBUX) is pushing these higher-margin items in its company’s retail stores, it is also cutting-down prices of other grocery-store products like the premium single-cup items. Analysts are of the opinion that this will boost sales. The projection is that net revenues will be around $107.9M in last quarter, which is a 51.6% rise from the same quarter of the 2012 fiscal year.

Regionally, the company has had a good performance in the Asia-Pacific region. Net revenues for this region were $233.7M. This was primarily due to new store growth and the 9% rise in same-store growth. For the full financial year, S&P expects a 9% rise in the Asia-Pacific region, apart from the 2% growth in Europe, Africa and the Middle East and an overall growth of 13%.

Tuesday’s trading

In Tuesday’s trading, Starbucks Corporation (NASDAQ:SBUX) rose by 1.16%. The opening price of the shares was $79.21, which climbed to an intraday high of $79.62 which was also the closing price of the day.



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