Cappuccinos!

Starbucks Corporation

Q3 Rev Est.:  $2.62 Bil

Q3 EPS Est.:  $0.30

On average, analysts are expecting $2.55 Bil in third-quarter revenue for Starbucks (“SBUX”) with earnings of $0.29 per share.  Both of these figures are below my estimates of $2.62 Bil in revenue and $0.30 in earnings.  Shares of the premium coffee maker have risen more than 80% over the past twelve months and 12.5% year-to-date.  Going into the late-July announcement, I am cautiously optimistic.  SBUX has a history of high earnings surprises.  If the stock is below $25 the day of the release, I recommend buying calls. 

Income Statement
For the three months ended June 27, 2010
Total Net Revenues	$2,618.83
Cost of Sales	$1,099.91
Store Operating Ex.	$856.36
Other Operating Ex.	$65.46
Depreciation	$133.92
G&A	$141.42
Restructuring	$8.16
Total Operating Ex.	$2,305.21
Income from Equity Investees	$35.80
Operating Income	$349.42
Interest Income	$11.78
Interest Ex.	-$8.27
EBT	$352.93
Taxes	$122.42
NC Interests	$0.81
Net Income	$229.70
Adj:  Restructuring	$5.14
Net Income for EPS	$234.84
Diluted EPS	$0.30

Trading Recommendation:  Buy Calls (read above)

For more on what a “Trading Recommendation” means, please click HERE.

If you are not already a Follower, be sure to click the "Follow" button in the right portion of your screen so you can catch all of my new posts as soon as they're released!

SBUX Ownership

Author:   NO

Author’s Family:  NO

Disclaimer:
· Opinions, estimates and projections contained in this report are of the author as of the date published and are subject to change without notice.
· This report is not, nor should it be construed as, an offer to sell or solicitation of an offer to buy any securities.
· Unless otherwise noted, all research reports provide information of a general nature and do not address the circumstances of any particular investor.

· It is important to do your own due diligence on any position you enter.