Starbucks (Nasdaq:SBUX) announced its results for the most recent quarter on November 1, 2012. Starbucks purchases, roasts and sells whole bean coffees, along with brewed coffees, Italian-style espresso beverages, cold blended beverages and a selection of accessories.
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The Numbers: Starbucks managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported 46 cents per share versus the 45 cents per share estimate and revenues of $3.36 billion versus the $3.33 billion estimate. EPS fell 2.1% while revenue climbed 11% from the same period last year. The company's income has remained about on par with last year's levels. Last quarter marked the third in a row of rising net income.
Management Quote: "Our Q4 and overall 2012 fiscal year performance demonstrates the strength of our business and brand," said Howard Schultz, chairman, president and chief executive officer, Starbucks Coffee Company. "The resiliency and relevance of our U.S. retail business, acceleration of the Channel Development business and expansion in Asia all contributed significantly to our strong results. I am incredibly proud of our 200,000 Starbucks partners around the world who have contributed to the success of the company and I am optimistic about achieving our aspirations for the future. " "Our excellent fourth quarter and full fiscal year results reflect the strength of our business and the solid execution by our partners, specifically illustrated in the fourth quarter by strong traffic growth, continued momentum in Channel Development, and rapid earnings growth," stated Troy Alstead, chief financial officer. "By delivering relevant innovation to our customers while increasing focus on execution and operating efficiencies, we drove sales growth and expanded profit margins. On the strength of our business in fiscal 2012 and the momentum we carry into the new fiscal year, we remain confident in our fiscal 2013 outlook of continued strong profitable growth on a global scale."
A Look Back: Net income has increased 15.3% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 28.5% from the year-earlier quarter.
Looking Ahead: The outlook for the company's results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is 56 cents per share, down from 57 cents 90 days ago. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. The average estimate for the fiscal year has remained at $1.78 per share.