Starbucks Earnings Preview: Analysts Expect Rising Revenue, Falling EPS

Starbucks SBUX unveils its next round of earnings this Thursday, November 3, 2011. Get the latest predictions in Benzinga's essential guide to the company's fourth quarter earnings report.

Earnings and Revenue:

Wall Street expects an EPS of 36 cents/share and revenues of $2.95 billion. Starbucks' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 37 cents/share on revenues of $2.84 billion. We'll have to wait for Thursday to see if the company reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.

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

Quarter	Q3	Q2	Q1	Q4
EPS Estimate	$0.34	$0.34	$0.39	$0.32
EPS Actual	$0.36	$0.34	$0.45	$0.37

Stock Performance:

Shares of Starbucks were trading at $42.50 as of October 28, 2011. Shares are up 33.7% year to date. For a full 12 months, the return has risen by 34.1%. 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 is a Moderate Buy. This rating has strengthened slightly over the past ninety days.

Competitors:

Wondering how Starbucks compares to rivals in the same sector? Here are a few of the company's peers.

• Einstein Noah Restaurant Group BAGL: Moderate Buy with a $0.18 recent quarter EPS
• Green Mountain Coffee Roasters GMCR: Moderate Buy with a $0.49 recent quarter EPS
• McDonald's MCD: Moderate Buy with a $1.45 recent quarter EPS
• Caribou Coffee Company (CBOU): Moderate Buy with a $0.13 recent quarter EPS

The retail-restaurants company's industry has seen price/earnings growth of 1.3% during the current fiscal year.

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.

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