>>> Starbucks reports EPS in-line, revs in-line; guides Q2 EPS below consens



From: thechek@mac.com At: Jan 22 2015 22:18:23
To: LAURENT CHEKROUN (MAKOR SECURITIES LLP)
Subject: Fwd:>>> Starbucks reports EPS in-line, revs in-line; guides Q2 EPS below consensus; guides FY15 EPS in-line, revs reaffirms
Starbucks reports EPS in-line, revs in-line; guides Q2 EPS below consensus; guides FY15 EPS in-line, revs reaffirms  
Reports Q1 (Dec) earnings of $0.80 per share, in-line with the Capital IQ Consensus Estimate of $0.80; revenues rose 13.3% year/year to $4.8 bln vs the $4.8 bln consensus. Global comparable store sales increased 5%, with a 2% increase in traffic. 
  • Co issues downside guidance for Q2, sees EPS of $0.64-0.65, excluding non-recurring items, vs. $0.68 Capital IQ Consensus Estimate. 
  • Co issues in-line guidance for FY15, sees EPS of $3.09-3.13, excluding non-recurring items, vs. $3.12 Capital IQ Consensus Estimate; reiterates FY15 revs growth of 16-18% (approx $19.08-19.41 bln) vs. $18.99 bln Capital IQ Consensus Estimate. 
    • Global comparable store sales growth of mid-single digits 
    • GAAP operating margin is expected to be mildly dilutive versus FY14 due to the impact of our ownership change in Starbucks Japan: 
    • Americas margin: modest improvement over FY14 EMEA margin: in the 10% - 12% range 
    • China/Asia Pacific margin: in the high teens 
    • Channel Development margin: modest improvement over FY14 
    • Non-GAAP operating margin is expected to be flat to slightly up over prior year non-GAAP operating margin 
    • New store openings of 1,650 net new.