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Forward-looking results | Starbucks Q3 revenue is expected to grow by 9.5%, profit margins may be under pressure due to inflation
uSMART盈立智投 08-01 16:34

Starbucks (SBUX.US) $plans to release third-quarter 2022 results after US stocks closed on Aug. 2, Eastern time. Analysts at financial firm Zacks (Zacks Consensus Estimate) generally expect Q3 revenue of about $8.21 billion, up 9.5% from a year earlier, and earnings per share (EPS) analysts expect it to be $0.77, down 23.8% from a year earlier. Judging from the historical performance of the stock price, if the Starbucks Q3 EPS exceeds market expectations, the share price is likely to usher in a new round of rise.

It is worth noting that Starbucks' third-quarter revenue is likely to benefit from the company's growth and digitization. In addition, the increase in trading volume and the increase in average commodity prices may also be conducive to year-on-year growth in the third quarter. Today, the company has benefited from the increase in 90-day active membership of the Star Club and is expected to continue to benefit from strong expansion efforts.

At the same time, strong North American sales may have boosted the company's revenue. Zacks estimates revenues from its North American and international operations were $6.141 billion and $1.695 billion, up 13.7 per cent and 2.2 per cent, respectively, from a year earlier.

However, the dismal performance in China may also have had a negative impact on the company's performance. In a conference call in the second quarter, the company said it was unable to predict its performance in China in the second half of this year because of uncertainty in the Chinese market. It is understood that by the end of the second quarter of 2022, the company pointed out that nearly 1/3 of its stores in China were still temporarily closed or offered only mobile ordering channels.

Finally, the company's third-quarter profit margin could be affected by inflationary pressures and increased investment in the wages and benefits of store partners. Zacks expects an adjusted operating margin of 19.9 per cent in the third quarter of 2022, up from 20.5 per cent a year earlier.

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