Starbucks, Bank of America, Wal-Mart: SEC Filings for February 19, 2013
Starbucks reveals immense value in form 10-K
Seeking Alpha notes that Starbucks Corporation (SBUX) had an impressive 10-Q filing for the last quarter. The revenues were a whopping $3.8B and Starbucks will continue to make big moves to add to its earnings with the acquisition of specialty tea retailer Teavana for $600M cash being one of them.
The good thing for the global coffee giant is that the form 10-K reports nearly $2.4B in cash and short term investments and so meeting capital expenditures of roughly $1.2B in 2013 should not be an issue at all. The SEC filings further disclose the impressive store growth that occurred in 2012 after some tepid years of store expansions. There were 1000 new stores added and Starbucks projects 1300 outlets in 2013.
Nonetheless, there are potential risks highlighted in the 10-K with the $2.9B legal battle with Kraft (KRFT) being one of the most important ones to consider.
Other U.S. bank stocks don't match up to Bank of America
It's been rough for Bank of America (BAC) after its most recent 10-Q came out in mid-January. The Motley Fool reports that net income was hit by the escalating legal costs; Fannie Mae and other bank regulators claimed approximately $4.7B in the last quarter.
Even so, long-term prospects look pretty good after the settlement of the Fannie Mae liability. The form 10-K has some encouraging signs for BAC bulls since the bank stock had a 9.25% Tier 1 common capital ratio in 2012. The smartest money out there is getting behind B of A as a turnaround is widely anticipated. There are too many things to like about BAC to let past mistakes continue to haunt the firm.
Wal-Mart Stores, Inc. Earnings Call on Thursday
Wal-Mart (WMT) has seen its stock slide after revenues for the fourth quarter (usually its best) did not meet expectations. At the end of the day, what is going to matter for investors is that we have a retail juggernaut that averages close to $500B in annual revenues. Every now and again, we throw the "B" figure at you and this time it definitely means something since it comprises as much as 10% of retail sales in the entire US of A.
Read the company’s latest 10-K and join the earnings call to hear more from management. The call starts at 7:00 a.m. ET on February 21, 2013.