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Starbucks (SBUX) Gears Up for Q4 Earnings: What's in Store?
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Starbucks Corporation (SBUX - Free Report) is scheduled to report fourth-quarter fiscal 2021 results on Oct 28, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 31.2%.
Q4 Estimates
The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at $1.00 per share, indicating growth of 96.1% year over year. In the past seven days, earnings estimates for the current quarter have remained stable. The consensus mark for revenues stands at $8.26 billion, suggesting growth of 33.2% from the year-ago quarter.
Factors to Note
The company’s fiscal fourth-quarter performance is likely to have benefited from robust comps growth and rapid digitalization. Management’s focus on increasing global market share by judiciously opening stores in new and existing markets, remodeling existing stores, deploying technology, controlling costs, and aggressive product innovation and brand building might have favored the to-be-reported quarter’s performance.
China and the Asia-Pacific regions have been gaining from unit growth, rising brand awareness and increased usage of the digital/mobile/loyalty platforms. In the third quarter, mobile order sales hit a record 34% of sales in China compared with 23% in the comparable year-ago period. In the past year, mobile order sales have doubled in China. The company has also been gaining from its partnership with Beyond Meat to roll out a plant-based lunch menu in China.
Robust comparable sales continue to drive the company’s results. The company expects global comparable sales to increase between 20% and 21% in fiscal 2021. It expects Americas and U.S. comparable store sales to improve in the range of 21% to 22% in fiscal 2021.
The Zacks Consensus Estimate for revenues for Americas and International segments is pegged at $5,842 million and $1,973 million, suggesting year-over-year increase of 38% and 32.2%, respectively.
However, resurgence in coronavirus cases in some parts of the world might have weighed on the to-be-reported quarter’s performance. The pandemic is likely to have impacted the company’s traffic in the quarter.
Our proven model doesn’t conclusively predict an earnings beat for Starbucks this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Starbucks has an Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, of -3.24%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Retail-Wholesale space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
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Starbucks (SBUX) Gears Up for Q4 Earnings: What's in Store?
Starbucks Corporation (SBUX - Free Report) is scheduled to report fourth-quarter fiscal 2021 results on Oct 28, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 31.2%.
Q4 Estimates
The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at $1.00 per share, indicating growth of 96.1% year over year. In the past seven days, earnings estimates for the current quarter have remained stable. The consensus mark for revenues stands at $8.26 billion, suggesting growth of 33.2% from the year-ago quarter.
Factors to Note
The company’s fiscal fourth-quarter performance is likely to have benefited from robust comps growth and rapid digitalization. Management’s focus on increasing global market share by judiciously opening stores in new and existing markets, remodeling existing stores, deploying technology, controlling costs, and aggressive product innovation and brand building might have favored the to-be-reported quarter’s performance.
China and the Asia-Pacific regions have been gaining from unit growth, rising brand awareness and increased usage of the digital/mobile/loyalty platforms. In the third quarter, mobile order sales hit a record 34% of sales in China compared with 23% in the comparable year-ago period. In the past year, mobile order sales have doubled in China. The company has also been gaining from its partnership with Beyond Meat to roll out a plant-based lunch menu in China.
Robust comparable sales continue to drive the company’s results. The company expects global comparable sales to increase between 20% and 21% in fiscal 2021. It expects Americas and U.S. comparable store sales to improve in the range of 21% to 22% in fiscal 2021.
The Zacks Consensus Estimate for revenues for Americas and International segments is pegged at $5,842 million and $1,973 million, suggesting year-over-year increase of 38% and 32.2%, respectively.
However, resurgence in coronavirus cases in some parts of the world might have weighed on the to-be-reported quarter’s performance. The pandemic is likely to have impacted the company’s traffic in the quarter.
Starbucks Corporation Price and EPS Surprise
Starbucks Corporation price-eps-surprise | Starbucks Corporation Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Starbucks this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Starbucks has an Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, of -3.24%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Retail-Wholesale space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
The Cheesecake Factory Incorporated (CAKE - Free Report) has an Earnings ESP of +0.98% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Five Below, Inc. (FIVE - Free Report) has an Earnings ESP of +3.90% and a Zacks Rank #3.
Wingstop Inc. (WING - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank #3.