Starbucks beats by $0.02, misses on revs; guides Q2 EPS below consensus; guides Q3 (Jun) EPS below consensus; guides FY14 EPS in-line
Reports Q1 (Dec) earnings of $0.71 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.69; revenues rose 11.8% year/year to $4.24 bln vs the $4.29 bln consensus.
Global comparable store sales grew 5% (street expectations were +6%), driven by a 4% increase in traffic Americas and U.S. comp growth of 5%, driven by a 4% increase in traffic EMEA comp growth of 5%, the highest growth in 13 quarters, driven by a 3% increase in traffic China/Asia Pacific comp growth of 8%, driven by a 7% increase in traffic.
Consolidated operating income increased 29% to $814 million
Consolidated operating margin improved 260 basis points to 19.2%
Co issues downside guidance for Q2, sees EPS of $0.54-0.55 vs. $0.56 Capital IQ Consensus Estimate. Co issues downside guidance for Q3 (Jun), sees EPS of $0.64-0.66 vs. $0.68 Capital IQ Consensus Estimate. Co issues in-line guidance for FY14, sees EPS of $2.59-2.67 vs. $2.65 Capital IQ Consensus Estimate. ...
FY14 Forecasts
SBUX Revenue growth of 10% or greater
Global comparable store sales growth in the mid single digits
Consolidated operating margin improvement of approximately 150 to 200 basis points over FY13:
Americas: moderate improvement over FY13
EMEA: operating margin improving toward the high single digits
CAP: operating margin percentage moving toward the low 30's Channel Development: moderate improvement over FY13...
Capital expenditures of approximately $1.2 billion