As Starbucks (NASDAQ:SBUX) approaches its next earnings release on Tuesday, 1 February 2022, investors will be hoping for strength, with analysts expecting the coffee chain to report earnings of $0.80 per share. These estimates would indicate year-over-year growth of 31.15%.

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The company's fiscal first-quarter performance is likely to have benefited from robust comps growth and digitalization, while store expansion efforts probably contributed to the top line.

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Starbucks expects to open nearly 2,000 net new stores worldwide and anticipates global comparable sales to reach high-single digits in fiscal 2022.  The coffee giant further returned to record operating territory in fiscal 2021, with comparable-store sales rising 20% through late September. Executives said comps should increase by about 8% in fiscal 2022.

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Though Starbucks has warned investors to expect lukewarm earnings this year, that will, ideally, lay the foundation for more margin expansion ahead, implying fiscal 2022 to be a pivotal year of investment.

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Moreover, a resurgence in coronavirus cases in some parts of the world might have weighed on the to-be-reported results. During the fourth quarter of fiscal 2021, operations of Starbucks in China were affected by pandemic-induced restrictions across 18 provincial regions.

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PREVIOUS QUARTERLY EARNINGS

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In its fourth quarter of fiscal year 2021, Starbucks reported solid performances and an overall improvement to its gross and operating margins. However, both gross and operating margins have been in a long-term decline.

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Comparingly, in Fiscal 2016 Starbucks Corp's gross margin peaked at 31.6% and now sits at 29%. In turn, its operating margin was 18.1% and is now 16.2%, signaling concern to some investors.

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Recently, Stifel Nicolaus analyst Christopher O'Cull maintained a Hold rating on Starbucks and set a price target of $122. Currently, the company has an analysts consensus rating of Moderate buy.

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Last Friday, Starbucks' shares closed at $97.21, close to its 52-week low of $93.79.

To invest in Starbucks' stock visit MEXEM.

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