Starbucks (SBUX) Beats Q4 Estimates

Starbucks (SBUX 20.53 +0.83) reported earnings and revenue results after the close yesterday, which topped Wall Street estimates.

The company reported fourth quarter earnings of $0.24, which was $0.03 better than the First Call consensus of $0.21. Revenue fell 3.7% year/year to $2.42 billion vs. the $2.39 billion consensus.

Non-GAAP operating margin improved 570 basis points y/y to 10.4%, previous quarter was 10.6%. Co delivered cost savings of $580 million for FY09, above its target of $550 million.

The company had restructuring charges of $53 million in the quarter compared to $51.6 million in the third quarter. Same store sales declined 1.0% compared to street expectations of -2.6%.

For the fiscal year 2009, the company issued upside EPS guidance of $0.80 vs. the consensus of $0.76. Separately, the company raised operating margins target improvement year/year to 200 to 250 bps from 150 to 200 bps.

For 2010, the company says it expects to see little impact from commodities.