NEW YORK (TheStreet) --Starbucks Corp. (SBUX) - Get Starbucks Corporation Report is scheduled to release its 2014 fourth quarter earnings results after the close on Thursday, and analysts are expecting the coffeehouse giant to post an increase in earnings and revenue for the most recent quarter.
Shares of Starbucks are down by 0.73% to $76.49 in mid-afternoon trading on Wednesday.
Analysts polled by FactSet are expecting Starbucks to report earnings per share of 74 cents for the 2014 fourth quarter, compared to 63 cents for the year ago period.
Revenue is anticipated to be $4.24 billion for the latest quarter versus the $3.80 billion Starbucks reported for the 2013 fourth quarter.
Separately, TheStreet Ratings team rates STARBUCKS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate STARBUCKS CORP (SBUX) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 10.2%. Since the same quarter one year prior, revenues rose by 11.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Hotels, Restaurants & Leisure industry average. The net income increased by 22.7% when compared to the same quarter one year prior, going from $417.80 million to $512.70 million.
- Net operating cash flow has increased to $850.10 million or 27.77% when compared to the same quarter last year. In addition, STARBUCKS CORP has also vastly surpassed the industry average cash flow growth rate of -67.46%.
- The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that SBUX's debt-to-equity ratio is low, the quick ratio, which is currently 0.62, displays a potential problem in covering short-term cash needs.
- STARBUCKS CORP has improved earnings per share by 21.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, STARBUCKS CORP swung to a loss, reporting -$0.01 versus $1.79 in the prior year. This year, the market expects an improvement in earnings ($2.67 versus -$0.01).
- You can view the full analysis from the report here: SBUX Ratings Report