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

Posted by Beth Hart October 30, 2013 0 Comment 941 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.



About Beth Hart

Beth is from New York. She has two master’s degrees and served as a lecturer in B-School. Her master’s degree is an MBA in Global Management from the University of Phoenix (2010). She has worked for small businesses, public agencies, and large corporations. She does write articles as a freelancer.

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