Brokerages Expect Starbucks Co. (SBUX) to Announce $0.56 EPS

Brokerages forecast that Starbucks Co. (NASDAQ:SBUX) will post earnings per share (EPS) of $0.56 for the current fiscal quarter, according to Zacks. Ten analysts have issued estimates for Starbucks’ earnings, with the lowest EPS estimate coming in at $0.53 and the highest estimate coming in at $0.58. Starbucks posted earnings of $0.53 per share in the same quarter last year, which would indicate a positive year-over-year growth rate of 5.7%. The firm is expected to report its next earnings results on Thursday, April 25th.

On average, analysts expect that Starbucks will report full year earnings of $2.72 per share for the current fiscal year, with EPS estimates ranging from $2.66 to $2.75. For the next fiscal year, analysts anticipate that the business will report earnings of $3.03 per share, with EPS estimates ranging from $2.94 to $3.10. Zacks Investment Research’s EPS calculations are a mean average based on a survey of sell-side research analysts that that provide coverage for Starbucks.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings results on Thursday, January 24th. The coffee company reported $0.75 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.65 by $0.10. Starbucks had a return on equity of 193.00% and a net margin of 11.98%. The business had revenue of $6.63 billion during the quarter, compared to the consensus estimate of $6.49 billion. During the same period in the prior year, the company posted $0.65 EPS. The firm’s revenue for the quarter was up 9.2% compared to the same quarter last year.

Several research firms have weighed in on SBUX. BidaskClub downgraded Starbucks from a “strong-buy” rating to a “buy” rating in a research note on Monday, February 4th. BMO Capital Markets upped their price target on Starbucks to $63.00 and gave the stock a “market perform” rating in a research note on Friday, December 14th. They noted that the move was a valuation call. Mizuho set a $75.00 price target on Starbucks and gave the stock a “buy” rating in a research note on Friday, December 14th. Bank of America set a $68.00 price target on Starbucks and gave the stock a “buy” rating in a research note on Monday, December 10th. Finally, Goldman Sachs Group downgraded Starbucks from a “buy” rating to a “neutral” rating and dropped their price target for the stock from $75.00 to $68.00 in a research note on Friday, January 11th. Two equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and sixteen have issued a buy rating to the company. Starbucks currently has a consensus rating of “Hold” and a consensus price target of $67.01.

In other news, insider Clifford Burrows sold 152,634 shares of the firm’s stock in a transaction on Tuesday, January 29th. The stock was sold at an average price of $67.22, for a total transaction of $10,260,057.48. Following the transaction, the insider now owns 311,083 shares in the company, valued at $20,910,999.26. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Vivek C. Varma sold 73,242 shares of the firm’s stock in a transaction on Friday, February 1st. The shares were sold at an average price of $68.36, for a total value of $5,006,823.12. Following the transaction, the executive vice president now owns 140,882 shares in the company, valued at approximately $9,630,693.52. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 565,806 shares of company stock worth $38,789,988. Insiders own 3.98% of the company’s stock.

Institutional investors and hedge funds have recently bought and sold shares of the business. Lake Point Wealth Management purchased a new position in Starbucks in the fourth quarter valued at about $25,000. Highwater Wealth Management LLC purchased a new position in Starbucks in the fourth quarter valued at about $28,000. Veritas Investment Management LLP purchased a new position in Starbucks in the fourth quarter valued at about $28,000. Mark Sheptoff Financial Planning LLC purchased a new position in Starbucks in the fourth quarter valued at about $32,000. Finally, Clean Yield Group purchased a new position in Starbucks in the fourth quarter valued at about $33,000. Institutional investors own 72.42% of the company’s stock.

SBUX stock opened at $70.10 on Monday. Starbucks has a 1-year low of $47.37 and a 1-year high of $72.18. The company has a quick ratio of 1.16, a current ratio of 1.41 and a debt-to-equity ratio of 7.73. The company has a market capitalization of $87.11 billion, a price-to-earnings ratio of 28.97, a price-to-earnings-growth ratio of 2.01 and a beta of 0.50.

The company also recently declared a quarterly dividend, which was paid on Friday, February 22nd. Stockholders of record on Thursday, February 7th were paid a dividend of $0.36 per share. The ex-dividend date was Wednesday, February 6th. This represents a $1.44 annualized dividend and a dividend yield of 2.05%. Starbucks’s dividend payout ratio is currently 59.50%.

Starbucks Company Profile

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; China/Asia Pacific; Europe, Middle East, and Africa; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink beverages, iced tea, and food and snacks; and various food products, such as pastries, breakfast sandwiches, and lunch items.

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