Starbucks Co. (NASDAQ:SBUX) Expected to Post Earnings of $0.79 Per Share

Analysts expect Starbucks Co. (NASDAQ:SBUX) to post $0.79 earnings per share for the current fiscal quarter, Zacks Investment Research reports. Nine analysts have made estimates for Starbucks’ earnings, with the lowest EPS estimate coming in at $0.72 and the highest estimate coming in at $0.83. Starbucks posted earnings of $0.61 per share during the same quarter last year, which suggests a positive year over year growth rate of 29.5%. The business is scheduled to report its next earnings results on Tuesday, January 25th.

According to Zacks, analysts expect that Starbucks will report full year earnings of $3.47 per share for the current year, with EPS estimates ranging from $3.38 to $3.72. For the next financial year, analysts anticipate that the business will report earnings of $4.02 per share, with EPS estimates ranging from $3.88 to $4.14. Zacks’ earnings per share calculations are an average based on a survey of sell-side analysts that follow Starbucks.

Starbucks (NASDAQ:SBUX) last announced its earnings results on Thursday, October 28th. The coffee company reported $1.00 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.00. Starbucks had a negative return on equity of 55.34% and a net margin of 14.45%. The firm had revenue of $8.10 billion during the quarter, compared to analyst estimates of $8.22 billion. During the same period last year, the firm posted $0.51 EPS. The business’s revenue was up 30.6% compared to the same quarter last year.

A number of equities research analysts have recently weighed in on the company. Wells Fargo & Company cut their price objective on Starbucks from $135.00 to $122.00 and set an “overweight” rating on the stock in a research report on Friday, October 29th. Royal Bank of Canada decreased their price target on Starbucks from $131.00 to $124.00 and set an “outperform” rating for the company in a research note on Friday, October 29th. Atlantic Securities cut Starbucks from an “overweight” rating to a “neutral” rating and set a $105.00 price objective for the company. in a research report on Thursday, September 30th. Stifel Nicolaus cut Starbucks from a “buy” rating to a “hold” rating and reduced their price objective for the company from $130.00 to $112.00 in a research report on Friday, October 29th. Finally, Oppenheimer reduced their price objective on Starbucks from $140.00 to $130.00 and set an “outperform” rating for the company in a research report on Friday, October 29th. Ten investment analysts have rated the stock with a hold rating and nineteen have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and an average target price of $123.00.

Shares of SBUX traded up $0.39 during trading hours on Thursday, reaching $113.97. 4,464,304 shares of the company’s stock traded hands, compared to its average volume of 6,062,163. The stock has a market cap of $134.38 billion, a PE ratio of 32.10, a price-to-earnings-growth ratio of 1.60 and a beta of 0.84. Starbucks has a 12 month low of $95.92 and a 12 month high of $126.32. The firm’s 50 day simple moving average is $112.55 and its 200-day simple moving average is $114.44.

The company also recently declared a quarterly dividend, which will be paid on Friday, February 25th. Investors of record on Friday, February 11th will be paid a dividend of $0.49 per share. This represents a $1.96 dividend on an annualized basis and a yield of 1.72%. The ex-dividend date is Thursday, February 10th. Starbucks’s payout ratio is presently 55.21%.

In other Starbucks news, insider Michael Aaron Conway sold 47,088 shares of the company’s stock in a transaction that occurred on Monday, November 22nd. The stock was sold at an average price of $111.50, for a total transaction of $5,250,312.00. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Gina Woods sold 4,030 shares of the company’s stock in a transaction that occurred on Tuesday, November 23rd. The shares were sold at an average price of $113.41, for a total value of $457,042.30. The disclosure for this sale can be found here. 0.36% of the stock is currently owned by corporate insiders.

Several hedge funds and other institutional investors have recently modified their holdings of SBUX. Nordea Investment Management AB raised its holdings in shares of Starbucks by 124.2% in the third quarter. Nordea Investment Management AB now owns 7,923,711 shares of the coffee company’s stock worth $884,920,000 after buying an additional 4,390,109 shares during the period. Amundi purchased a new position in Starbucks during the 2nd quarter worth $416,728,000. Arrowstreet Capital Limited Partnership increased its holdings in Starbucks by 150.7% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 4,375,236 shares of the coffee company’s stock worth $482,632,000 after purchasing an additional 2,629,721 shares during the period. Wellington Management Group LLP increased its holdings in Starbucks by 86.6% during the 3rd quarter. Wellington Management Group LLP now owns 5,239,631 shares of the coffee company’s stock worth $577,984,000 after purchasing an additional 2,432,001 shares during the period. Finally, Price T Rowe Associates Inc. MD increased its holdings in Starbucks by 15.7% during the 2nd quarter. Price T Rowe Associates Inc. MD now owns 13,407,536 shares of the coffee company’s stock worth $1,499,096,000 after purchasing an additional 1,822,190 shares during the period. Hedge funds and other institutional investors own 68.27% of the company’s stock.

Starbucks Company Profile

Starbucks Corp. engages in the production, marketing, and retailing of specialty coffee. It operates through the following segments: Americas; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA); and Channel Development. The Americas, CAP, EMEA segments sells coffee and other beverages, complementary food, packaged coffees, single-serve coffee products, and a focused selection of merchandise through company-oriented stores, and licensed stores.

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Earnings History and Estimates for Starbucks (NASDAQ:SBUX)

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