What is the situation?
Fiscal Third Quarter 2012 Highlights:
- Total net revenues increased 13% to $3.3 billion
- U.S. comparable store sales increased 7%; Global comparable store sales increased 6%
- Channel Development revenues increased 45% to $316 million
- Operating income increased 22% to $492M; operating margin expanded 120 basis pts to 14.9%
- EPS increased 19% to $0.43 per share, compared to $0.36 per share in Q3 FY11
- Starbucks opened 231 net new stores globally, including its 600th store in mainland China, and its first stores in Finland and Costa Rica.
Why did it drop so much?
How much did they missed their EPS by and cut the forecast by?
What does cutting the Q4 forecast ultimately mean?
|From the SBUX 2011 10K|
- Forecasting lower EPS for Q4 2012 than Q1 2012 and Q4 2011
- About an estimated $16M to $23 less in Net Earnings comparing Q2 forecast to Q3 forecast
- 4% to 7% as a percentage of Q3 Net Earnings
- Assuming management meets their target of $.45 EPS in Q4 2012, the year EPS will be 1.78 versus 1.62 from prior year.