Starbucks Q2 Earnings under pressure amid rising inflation, unionization efforts, dented China markets
Robert Way/iStock Editorial via Getty Images


Specialty coffee roaster and retailer, Starbucks (NASDAQ:SBUX) is scheduled to announce Q2 earnings results on Tuesday, May 3rd, after market close.
The consensus EPS Estimate is $0.60 and the consensus Revenue Estimate is $7.6B; while Y/Y comparison is not available, the company reported $0.72/share non-GAAP earnings in Q1 and revenue of $8.1B.

Over the last 2 years, SBUX has beaten EPS estimates 88% of the time and has beaten revenue estimates 63% of the time.
Over the last 3 months, EPS estimates have seen 1 upward revision and 28 downward. Revenue estimates have seen 5 upward revisions and 20 downward.
Q2 performance is seen benefitting from robust comps growth and digitalization, increase in transaction and average ticket growth are also likely to have favored comps growth.
The company expects to open ~2K net new stores worldwide in FY22.
Recently Wedbush analyst Nick Setyan indicated that he was less enthusiastic on the prospects for Starbucks; he added that there remain many factors out of management's hands currently as it includes lockdowns across China, a key growth market for the Seattle-based coffeehouse chain, and unionization efforts that are gaining momentum.
Also, margin headwinds from adverse inflation and supply chain dynamics as well as the expectation of guidance cuts loom over the stock.
Quick look at company's growth metrics compared to peers:



In its recent earnings, the company reaffirmed its FY22 global comparable store sales growth guidance of high single digit and revenue guidance range of $32.5 to $33B; FY22 EPS is expected to decline by a range of 4% to 6% while non-GAAP EPS growth to be in the range of 8% to 10% from the base of $3.10 in FY21.
The company sees 200+ basis points points of incremental margin pressure in FY22 from inflation, COVID-related pay, new partner training and support costs as well as reduced sales from mobility restrictions combined.
With the return of CEO Howard Schultz leading the company amid an uncertain outlook, the company and stock price are likely to see a turnaround.
With 35 Wall Street Analysts covering the stock, 18 analysts have a Hold rating while 10 have a Strong Buy and 7 have a Buy rating.
In the past 6-months trading, the stock lost 32.7% and is currently trading near its 52-week low levels.
Recent earnings Analysis from our contributors: Starbucks Under Pressure As Coffee Prices Surge