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The Markets
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The Markets
by Proactive
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by Proactive
Proactive UK has moved.
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Food & drink

Starbucks should see strong earnings growth for 4Q

Starbucks Corp (NASDAQ:SBUX) is expected to report impressive growth on the top and bottom lines when it posts its fourth quarter and full-year fiscal 2023 results before the stock market opens on Thursday, November 2.

Wall Street analysts expect the company to report earnings per share of $0.97 on revenue of $9.23 billion, representing year-over-year increases of 19.8% and 9.7%, respectively.

For the full-year, analysts expect a 16.9% increase in EPS to $3.46 from $2.96 for fiscal 2022.

Revenue is expected to increase 11.1% from $32.25 billion to $35.83 billion.

These full-year estimates are in line with Starbucks’ guidance of revenue growth in the range of 10% to 12% and earnings growth in the range of 16% to 17%.

The coffee giant expects 4Q margins to be above the mid-40s range driven by seasonality which will lead to mid-40s margins for the year.

Investors should anticipate initial insights into Starbucks’ expectations for the upcoming 2024 financial year.

On its earnings conference call, Starbucks is also expected to update investors on its Reinvention plan, first announced in fall 2022, and launch its holiday offering.

Starbucks shares closed at US$94.20 on Monday.

Contact the author at emily.jarvie@proactiveinvestors.com

Follow her on X, formerly known as Twitter, @emilyjjarvie

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