Starbucks disclosed its quarterly revenue and earnings on Thursday, exceeding analysts' projections. The company attributed this success to the strong demand for premium beverages in the United States.
Starbucks Quarterly Earnings Report Review
The following is a comparison of Starbucks' fiscal fourth-quarter results with the forecasts of Wall Street analysts:
"Earnings per share surpassed expectations by $1.06, or 97 cents."
"Revenue: $9.37 billion, surpassing the $9.29 billion forecast."
Starbucks reported a net income attributable to the company of $1.22 billion, or $1.06 per share, for the quarter ending on October 1. This represents an increase from the corresponding period of the previous year, where it totaled $878.3 million, or 76 cents per share. In addition, net sales increased significantly by 11.4% to $9.37 billion.
Equal-store sales for the organization experienced an exceptional 8% expansion, propelled by increased mean transactions and a 3% surge in customer visits to its café locations. In contrast to the 6.8% same-store sales growth anticipated by analysts surveyed by StreetAccount, Starbucks' domestic locations surpassed these projections.
Comparable-store sales increased by 8% in the United States and North America. In the domestic market, average customer expenditures increased by 6%, accompanied by a 2% surge in customer footfall.
Starbucks' Management Forecast
In anticipation of fiscal 2024, Starbucks has projected a marginal deviation from its long-term estimate of 7% to 9% same-store sales growth, now estimating a growth in same-store sales between 5% and 7%. Rachel Ruggeri, CFO, characterized this perspective as "vibrant and attainable."
Nevertheless, the company's remaining long-term objectives are consistent with its current outlook. Starbucks has maintained its prior guidance regarding its revenue forecast of 10% to 12%. However, Ruggeri has indicated that net sales could fall within that range. Additionally, Starbucks maintained its 15% to 20% earnings per share growth forecast.
The company anticipates a 7% increase in its international footprint during fiscal year 2024, with the United States and China markets expanding by 4% and 13%, respectively. Starbucks foresees a 4% to 6% increase in same-store sales in China during the final three quarters of the fiscal year. Notably, Starbucks' forecast does not incorporate any currency exchange rate effects.
Starbucks Stock (SBUX) Technical Analysis
In the daily chart of SBUX stock, the upbeat quarterly earnings report pushed the price immediately to the 100.00 psychological level. Moreover, the buying pressure is supported by a descending channel breakout, while the broader market direction is bullish.
In the weekly timeframe, a bullish range breakout is seen, while the latest upbeat quarterly data pushed the monthly candle above the September 2023 high.
In this context, a downside correction is pending towards the 96.07 support level, but the bullish possibility is potent towards the 110.83 resistance level.
On the other hand, a sharp downside pressure with a bearish pressure below the 90.26 level could be an alarming sign for bulls, which could lower the price towards the 68.49 support level.
