Almost all of this busy week's content has been sent. In case you missed any of it:
- SoFi Earnings Review
- Lemonade Earnings Review
- Reddit Earnings Review
- Meta Earnings Review
- Robinhood Earnings Review
- Amazon Earnings Review
- Apple Earnings Review
I will be sending out more detailed reviews of Microsoft and Starbucks earnings as soon as I can. Brief coverage is provided below.
Next week, I will be providing earnings coverage on:
- Mercado Libre
- Palantir
- Axon
- Uber
- Shopify
- AMD
- AppLovin
- Datadog
- SpaceX
- The Trade Desk
1. Starbucks (SBUX) – Brief Earnings Snapshot
The full review is coming soon. For now:
a. Demand
- Beat 5.7% comp store sales growth with 7.9% growth. Really good.
- Traffic and ticket size were both better than expected.
- Beat revenue estimate by 2.2%.
- Store count was roughly in line with expectations.
More Y/Y Comp Store Sales (CSS) Growth Data:
- Within global CSS growth:
- Transactions rose by 4.2% compared to 3.8% last quarter and 1.0% the quarter before.
- Ticket size rose by 3.5% compared to 2.3% growth last quarter and 1.0% the quarter before.
- Within North American CSS growth:
- Transactions rose by 4.5% compared to 4.4% growth last quarter and 3.0% the quarter before.
- Ticket size rose by 3.5% compared to 2.7% growth last quarter and 2.0% the quarter before.
- USA CSS growth was 7.9% thanks to 4.2% transaction growth and 3.6% ticket size growth.
- Within International CSS growth:
- Transactions rose by 3.1% compared to 2.1% growth last quarter and 3.0% the quarter before.
- Ticket size rose by 2.6% compared to 0.5% growth last quarter and 2.0% the quarter before.
b. Profits
- Beat EBIT estimate by 23%.
- Beat $0.65 EPS estimate by $0.20.
c. Balance Sheet
- $3.6B cash & equivalents.
- $2B investments.
- $13B debt.
- 0.4% Y/Y dilution.
d. Guidance & Valuation
- Raised 5% global & U.S. comp sales growth guide to 6% & 6%+.
- Raised revenue growth guide from flat to slight growth, meeting estimate.
- Raised EBIT margin guidance.
- Raised $2.35 EPS guide to $2.60, beating estimate by $0.21.
SBUX trades for 36x EPS. EPS is expected to grow by 20% in each of the next 3 years.
