Starbucks Earnings Preview: Analysts Expect Flat EPS, Rising Revenue Over Previous Quarter

Starbucks SBUX releases its next round of earnings this Thursday, July 28, 2011. Get the latest predictions in Benzinga's essential guide to the company's third quarter earnings report.

Earnings and Revenue:

Analysts are predicting an EPS reading of 34 cents per share and revenues of $2.85 billion. Investors will be keen to see how this quarter's numbers stack up against the year-ago quarter's positive EPS of 29 cents per share on revenues of $2.61 billion. We'll know on Thursday whether Starbucks has managed the estimated 17.2% increase in EPS and 9.2% rise in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter	Q2	Q1	Q4	Q3
EPS Estimate	$0.34	$0.39	$0.32	$0.29
EPS Actual	$0.34	$0.45	$0.37	$0.29

Stock Performance:

At last check, shares of Starbucks were trading at $40.35. Since January 1st, shares of Starbucks have given investors a return of 26.5%. For a full 12 months, the return has risen by 50.6%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Starbucks is a Moderate Buy. The strength of this rating has declined slightly over the past three months.

Competitors:

Wondering how some of the other consumer discretionary companies are doing? Here are a few of Starbucks' peers in that sector.

Einstein Noah Restaurant Group BAGL: Moderate Buy with a $0.08 recent quarter EPS
Green Mountain Coffee Roasters GMCR: Moderate Buy with a $0.48 recent quarter EPS
McDonald's MCD: Moderate Buy with a $1.35 recent quarter EPS
Peet's Coffee & Tea PEET: Hold with a $0.41 recent quarter EPS

Starbucks is in the retail-restaurants industry, which has experienced price/earnings growth of 1.4%.

Finally, a description of the company's main areas of operation: Starbucks purchases, roasts and sells whole bean coffees, along with brewed coffees, Italian-style espresso beverages, cold blended beverages and a selection of accessories.

Take Action:

Now that you're fully prepared, get ready to take quick action if the company reports any numbers significantly different from those listed above. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.