Starbucks (SBUX) is projected to announce increased revenue and profits per share in its most recent earnings report, however sales are likely to fall from the previous record quarter.

According to Visible Alpha, Starbucks is predicted to post profits per share of $0.65, up from $0.58 a year ago, with a net income of $750 million. North American sales is predicted to be $6.15 billion, up from $5.44 billion the previous year. International revenue climbed to $1.76 billion in the same period, up from $1.7 billion.

The coffee company will release its second-quarter earnings report at 2 p.m. PT on Tuesday.
Starbucks reported solid profitability in the prior quarter, with record sales of $8.7 billion, up 8% year on year, or 12% excluding foreign currency headwinds. This was driven by 10% increase in North America and 5% growth internationally.

profits in the previous quarter were more spectacular after accounting for China lockdowns, which the business claimed reduced first-quarter profits by $0.06. As China’s lockdowns eased in January, the firm will be aiming for a lift this quarter.

Starbucks survived a difficult shopping environment at the end of 2022, but second-quarter profits may suffer from a post-Christmas hangover. Starbucks claimed a record $3.3 billion in gift card balances in the United States, which will have inflated prior figures. However, 30 million customers in the United States have active Starbucks Rewards membership, which might soften the damage coupled with the China surge.

Starbucks stock has risen over 50% in the past year, surpassing the S&P500 Consumer Discretionary Index, which has fallen by 19%.

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