Starbucks (SBUX) To Report Earnings Tomorrow: Here Is What To Expect

Starbucks (SBUX) To Report Earnings Tomorrow: Here Is What To Expect

Coffeehouse chain Starbucks (NASDAQ:SBUX) will be reporting results tomorrow afternoon. Here's what investors should know.

Starbucks missed analysts' revenue expectations by 6.5% last quarter, reporting revenues of $8.56 billion, down 1.8% year on year. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

Is Starbucks a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Starbucks's revenue to be flat year on year at $9.25 billion, slowing from the 12.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.93 per share.

Starbucks Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Starbucks has missed Wall Street's revenue estimates four times over the last two years.

Looking at Starbucks's peers in the restaurants segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Domino's delivered year-on-year revenue growth of 7.1%, meeting analysts' expectations, and BJ's reported flat revenue, in line with consensus estimates. Domino's traded down 14.6% following the results while BJ's was also down 15.4%.

Read our full analysis of Domino's results here and BJ's results here.

Investors in the restaurants segment have had steady hands going into earnings, with share prices flat over the last month. Starbucks is down 3.9% during the same time and is heading into earnings with an average analyst price target of $87.3 (compared to the current share price of $74.16).

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