Yahoo Finance Starbucks (SBUX) to Report Q2 Earnings: What's in the Offing?
Starbucks Corporation SBUX is scheduled to report second-quarter fiscal 2023 results on May 2, after the closing bell. In the last reported quarter, the company delivered an earnings miss of 2.6%.
Q2 Estimates
The Zacks Consensus Estimate for earnings is pegged at 64 cents per share, indicating growth of 8.5% year over year. In the past seven days, earnings estimates for the current quarter have remained stable. The Zacks Consensus Estimate for revenues is pegged at $8.4 billion, suggesting an increase of 9.9% from the year-ago quarter.
Factors to Note
In the quarter, the company’s earnings are likely to have benefited from robust North America comps, expansion efforts and digitalization. Menu innovation and exceptional loyalty program aids Starbucks. In the quarter to be reported, SBUX is likely to have witnessed an increase in international sales, which has remained a cause of concern for the past few quarters.
For second-quarter fiscal 2023, our model predicts North America sales and Channel Development sales to be $6,047.6 million and $472.7 million, up 11.1% and 2.1% year over year, respectively. Starbucks is gaining from an increase in transactions and average ticket growth. We expect international sales to increase 1.7% year over year to $1,732.1 million.
Inflationary pressures and increased investments in store partner wages and benefits are likely to have affected the bottom line in the quarter-to-be reported. Our model estimates adjusted operating margin to be 13%, flat year over year. Our model projects total operating expenses to be $4,666.9 million, up 9.3% from the prior-year quarter.
Starbucks Corporation Price and EPS Surprise
Starbucks Corporation price-eps-surprise | Starbucks Corporation Quote
What the Zacks Model Unveils
Our proven model predicts 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 (the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) of +1.07%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Starbucks currently carries a Zacks Rank #3.
Other Stocks Poised to Beat Estimates
Here are some other stocks worth considering from the Zacks Retail-Wholesale space as our model shows that these too have the right combination of elements to beat on earnings this season.
Yum! Brands, Inc. YUM currently has an Earnings ESP of +0.98% and a Zacks Rank #3.
Shares of Yum! Brands have gained 17% in the past year. YUM has a trailing four-quarter negative earnings surprise of 1.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Wendy's Company WEN currently has an Earnings ESP of +4.48% and a Zacks Rank #3.
WEN’s earnings beat the consensus mark in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 4.5%, on average. Earnings for the to-be-reported quarter are expected to increase 17.7% year over year.
Shake Shack Inc. SHAK has an Earnings ESP of +2.30% and a Zacks Rank #2.
Shares of Shake Shack have declined 10.1% in the past year. SHAK’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 39.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Starbucks Corporation (SBUX) : Free Stock Analysis Report
Yum! Brands, Inc. (YUM) : Free Stock Analysis Report
The Wendy's Company (WEN) : Free Stock Analysis Report
Shake Shack, Inc. (SHAK) : Free Stock Analysis Report
