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How Are ETFs Reacting to Starbucks' Q4 Earnings Results?
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Starbucks Corporation (SBUX - Free Report) released fourth-quarter fiscal 2021 results on Oct 28, after market close. The company’s earnings came in line with estimates while revenues missed the same. However, the metrics rose year over year despite the pandemic. Shares of Starbucks have declined about 6.3% since the earnings release.
Earnings in Detail
Starbucks reported adjusted earnings of $1 per share. In the prior-year quarter, the company had reported adjusted earnings of 51 cents per share. Revenues rose nearly 31.3% year over year to around $8.15 billion but missed the Zacks Consensus Estimate of $8.26 billion. The upside was majorly driven by a rise in comparable-store sales backed by the lapping of business disruption in the prior year due to the COVID-19 pandemic.
Business Update
Starbucks opened 538 net new stores worldwide in the fiscal fourth quarter, taking the total tally to 33,833. Global store growth was 4% on a year-over-year basis.
Meanwhile, global comparable-store sales rose 17% year over year. Global comps improved on a 15% increase in comparable transactions along with a 2% rise in average ticket.
The company’s Active Starbucks Rewards loyalty program expanded to 24.8 million active members in the United States, up 28% on a year-over-year basis.
Guidance
Starbucks expects global comparable sales to reach high-single digits for fiscal 2022. The company expects to open approximately 2,000 net new stores globally in fiscal 2022, up from 1,173 store openings reported in fiscal 2021. Starbucks intends to diversify its portfolio across highly-profitable markets as it expects 75% of its net new store openings outside the United States. Consolidated revenues for fiscal 2022 are expected between $32.5 billion and $33 billion.
For fiscal 2022, the company anticipates non-GAAP EPS growth to be a minimum of 10% from the base of $3.10 in fiscal 2021 (the figure is adjusted for non-GAAP treatment of certain integration costs and excludes the involvement of extra week).
ETFs in Focus
Investors might want to take a look at a few ETFs, which have notable exposure to Starbucks and can cash in on the coffee giant’s earnings results:
iShares Evolved U.S. Consumer Staples ETF — 4.16% exposure to Starbucks
It is an actively-managed fund which employs data science techniques to identify companies with exposure to the consumer staples sector. The fund comprises 121 holdings. Its AUM is $14.7 million and expense ratio is 0.18%. The fund has lost around 0.4% since Starbucks’ earnings release.
The Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) — 2.85% exposure
The fund tracks the Consumer Discretionary Select Sector Index and comprises 63 holdings. The fund’s AUM is $22.22 billion and expense ratio is 0.12%. However, it has risen around 0.3% since Starbucks’ earnings release (read: ETFs to Gain as US Consumer Confidence Rises in October).
This fund currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index. The fund’s AUM is $7.17 billion and expense ratio is 0.10%. The fund has increased 0.1% since Starbucks’ earnings release.
This fund tracks the MSCI USA IMI Consumer Discretionary Index. Its AUM is $1.70 billion and expense ratio is 0.08%. However, it has gained around 0.1% since the coffee giant’s earnings release (read: ETFs in Focus Post Dismal Amazon Q3 Results).
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How Are ETFs Reacting to Starbucks' Q4 Earnings Results?
Starbucks Corporation (SBUX - Free Report) released fourth-quarter fiscal 2021 results on Oct 28, after market close. The company’s earnings came in line with estimates while revenues missed the same. However, the metrics rose year over year despite the pandemic. Shares of Starbucks have declined about 6.3% since the earnings release.
Earnings in Detail
Starbucks reported adjusted earnings of $1 per share. In the prior-year quarter, the company had reported adjusted earnings of 51 cents per share. Revenues rose nearly 31.3% year over year to around $8.15 billion but missed the Zacks Consensus Estimate of $8.26 billion. The upside was majorly driven by a rise in comparable-store sales backed by the lapping of business disruption in the prior year due to the COVID-19 pandemic.
Business Update
Starbucks opened 538 net new stores worldwide in the fiscal fourth quarter, taking the total tally to 33,833. Global store growth was 4% on a year-over-year basis.
Meanwhile, global comparable-store sales rose 17% year over year. Global comps improved on a 15% increase in comparable transactions along with a 2% rise in average ticket.
The company’s Active Starbucks Rewards loyalty program expanded to 24.8 million active members in the United States, up 28% on a year-over-year basis.
Guidance
Starbucks expects global comparable sales to reach high-single digits for fiscal 2022. The company expects to open approximately 2,000 net new stores globally in fiscal 2022, up from 1,173 store openings reported in fiscal 2021. Starbucks intends to diversify its portfolio across highly-profitable markets as it expects 75% of its net new store openings outside the United States. Consolidated revenues for fiscal 2022 are expected between $32.5 billion and $33 billion.
For fiscal 2022, the company anticipates non-GAAP EPS growth to be a minimum of 10% from the base of $3.10 in fiscal 2021 (the figure is adjusted for non-GAAP treatment of certain integration costs and excludes the involvement of extra week).
ETFs in Focus
Investors might want to take a look at a few ETFs, which have notable exposure to Starbucks and can cash in on the coffee giant’s earnings results:
iShares Evolved U.S. Consumer Staples ETF — 4.16% exposure to Starbucks
It is an actively-managed fund which employs data science techniques to identify companies with exposure to the consumer staples sector. The fund comprises 121 holdings. Its AUM is $14.7 million and expense ratio is 0.18%. The fund has lost around 0.4% since Starbucks’ earnings release.
The Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report) — 2.85% exposure
The fund tracks the Consumer Discretionary Select Sector Index and comprises 63 holdings. The fund’s AUM is $22.22 billion and expense ratio is 0.12%. However, it has risen around 0.3% since Starbucks’ earnings release (read: ETFs to Gain as US Consumer Confidence Rises in October).
Vanguard Consumer Discretionary ETF (VCR - Free Report) — 2.41% exposure
This fund currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index. The fund’s AUM is $7.17 billion and expense ratio is 0.10%. The fund has increased 0.1% since Starbucks’ earnings release.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) — 2.40% exposure
This fund tracks the MSCI USA IMI Consumer Discretionary Index. Its AUM is $1.70 billion and expense ratio is 0.08%. However, it has gained around 0.1% since the coffee giant’s earnings release (read: ETFs in Focus Post Dismal Amazon Q3 Results).