Starbucks (SBUX 75.22, -1.24, -1.6%) will report its Q3 results after today's closing bell, followed by the management's conference call at 17:00 ET.

The Capital IQ consensus expects the coffeeshop operator to report a 178.2% yr/yr drop in EPS to a loss of $0.61 on a 39.4% drop in revenue to $4.138 bln.

The company guided for a Q3 loss between $0.55 and $0.70/share on June 10.


TECHS

Starbucks trades at 33.1x forward earnings expectations, which represents a premium to Dunkin' Brands (DNKN 70.48, -0.47, -0.7%).

RESULTS:

Reports Q3 (Jun) loss of $0.46 per share, excluding non-recurring items, $0.11 better than the S&P Capital IQ Consensus of ($0.57); revenues fell 38.1% year/year to $4.22 bln vs the $4.14 bln S&P Capital IQ Consensus.

Global comparable store sales declined 40%, driven by a 51% decrease in comparable transactions, partially offset by a 23% increase in average ticket. Americas comparable store sales declined 41%, driven by a 53% decrease in comparable transactions, partially offset by a 27% increase in average ticket; U.S. comparable store sales were down 40%, with comparable transactions down 52%, partially offset by a 25% increase in average ticket.

International comparable store sales were down 37%, driven by a 44% decline in comparable transactions, slightly offset by a 13% increase in average ticket; China comparable store sales were down 19%, with comparable transactions down 27%, slightly offset by a 10% increase in average ticket

Co issues in-line guidance for Q4, sees EPS of $0.18-0.33, excluding non-recurring items, vs. $0.27 S&P Capital IQ Consensus and prior guidance of $0.15-0.40. Expects consolidated revenue decline of 10% to 15% for Q4.

  • Co issues upside guidance for FY20, sees EPS of $0.83-0.98, excluding non-recurring items, vs. $0.77 S&P Capital IQ Consensus and prior guidance of $0.55-0.95.

    • Expects Global comparable store sales declines of 12% to 17% for each of Q4 and full year

    • Americas and U.S. comparable store sales declines of 12% to 17% for each of Q4 and full year (previously declines of 10% to 20% for each of Q4 and full year). International comparable store sales declines of 10% to 15% for Q4 and 20% to 25% for full year inclusive of a benefit from value-added tax exemption of approximately 3% and 1%, respectively (previously declines of 10% to 20% for Q4 and 20% to 30% for full year)

    • China comparable store sales roughly flat to -5% for Q4 and a decline of 15% to 20% for full year, inclusive of a benefit from value-added tax exemption of approximately 4% and 2%, respectively (previously reoughly flat by the end of Q4 and a decline of 10% to 20% for full year)

The Board of Directors declared a cash dividend of $0.41 per share, payable on August 21, 2020, to shareholders of record as of August 7, 2020.

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