Starbucks earnings are out.
The company reported earnings of $0.46 per share, ahead of estimates of $0.45.
The company posted sales of $3.4 billion, slightly ahead of estimates of $3.38 billion.
The company also boosted its full-year 2013 earnings forecast to a range of $2.06-2.15 per share, which brings it in line with consensus estimates of $2.13 per share.
Shares are six percent higher in after-hours trading.
Here are the headline items from the release:
- Q4 Revenues up 11% to a Record $3.4 Billion
- Q4 EPS of $0.46; Up 24% After Excluding Non-Routine Gains in Prior Year
- Strong Traffic Drives 7% US Comparable Store Sales Growth; 6% Global Growth
- Channel Development Revenue Grows 32%
- Board Raises Quarterly Cash Dividend 24% on Strength of Business and Outlook
Highlights from the release:
Fiscal Year 2012 Highlights:
- Total net revenues increased 14% reaching a record $13.3 billion
- Global comparable store sales increased 7% driven by a 6% increase in traffic and a 1% increase in average ticket
- Americas comparable store sales increased 8% driven by a 6% increase in traffic and a 2% increase in average ticket
- Channel Development revenue grew 50% to $1.3 billion
- The company opened 1,063 net new stores globally
- Operating margin improved 20 basis points to 15.0% over the prior year’s operating margin of 14.8%, which included a non-routine gain in FY11, despite 160 basis points of impact due to higher commodity costs in FY12
- Operating margin expanded 50 basis points when compared to prior year non-GAAP operating margin of 14.5% after excluding the non-routine gain from FY11
- EPS increased 10% to $1.79 per share compared to the prior year EPS of $1.62 per share, which included $0.10 relating to non-routine gains in FY11
- EPS of $1.79 grew 18% over the prior year non-GAAP EPS of $1.52, excluding the non-routine gains in FY11
- Operating cash flow totaled $1.7 billion
- Starbucks returned approximately $1.1 billion to shareholders through share repurchases and dividend payments
“Our Q4 and overall 2012 fiscal year performance demonstrates the strength of our business and brand,” said Howard Schultz, chairman, president and chief executive officer, Starbucks Coffee Company. “The resiliency and relevance of our U.S. retail business, acceleration of the Channel Development business and expansion in Asia all contributed significantly to our strong results. I am incredibly proud of our 200,000 Starbucks partners around the world who have contributed to the success of the company and I am optimistic about achieving our aspirations for the future. “
“Our excellent fourth quarter and full fiscal year results reflect the strength of our business and the solid execution by our partners, specifically illustrated in the fourth quarter by strong traffic growth, continued momentum in Channel Development, and rapid earnings growth,” stated Troy Alstead, chief financial officer. “By delivering relevant innovation to our customers while increasing focus on execution and operating efficiencies, we drove sales growth and expanded profit margins. On the strength of our business in fiscal 2012 and the momentum we carry into the new fiscal year, we remain confident in our fiscal 2013 outlook of continued strong profitable growth on a global scale.”
Here is an excerpt from the release on the guidance boost:
Fiscal 2013 Targets
Starbucks has updated its fiscal 2013 targets as follows:
- The company is further accelerating its store growth target through the opening of approximately 1,300 net new stores globally, representing 22% growth over fiscal 2012.
- Maintaining its growth target of approximately 600 net new stores in the Americas, with the majority of those in the U.S. Of the approximately 600 stores, approximately half of the additions will be licensed stores.
- Accelerating growth in China/Asia Pacific to approximately 600 net new stores, with licensed stores comprising approximately half of the new additions. Of the approximately 600 stores, slightly more than half will be in China.
- Maintaining growth of approximately 100 net new stores in EMEA (Europe, Middle East, Russia and Africa), with licensed stores comprising more than two thirds of the new stores.
- Starbucks continues to target approximately 10% - 13% revenue growth, driven by mid-single-digit comparable store sales growth, approximately 1,300 net new store openings, and continued strong growth in the Channel Development business.
- The company now expects full-year consolidated operating margin improvement of approximately 100 basis points over FY12 results.
- Reflecting the strength of its global business and the pipeline of profitable growth initiatives, Starbucks is raising its earnings per share target to a range of $2.06 to $2.15, representing growth in the range of 15% - 20%, and consistent with its long-term outlook.
- Capital expenditures are now expected to be approximately $1.2 billion for the full year, reflecting the increase in new store growth and an increase in production capacity to support recently-announced initiatives.
ORIGINAL: Minutes away from Starbucks' Q3 earnings release, due out after the closing bell at 4:00 PM ET.
Consensus estimates are for earnings per share of $0.45 and sales of $3.38 billion.
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