Starbucks (NASDAQ:SBUX) Announces Quarterly Earnings Results, Misses Expectations By $0.11 EPS

Starbucks (NASDAQ:SBUX) issued its earnings results on Tuesday. The coffee company reported $0.68 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.79 by ($0.11), Briefing.com reports. Starbucks had a negative return on equity of 50.10% and a net margin of 11.38%. The firm had revenue of $8.56 billion during the quarter, compared to analysts’ expectations of $9.12 billion. During the same period last year, the firm posted $0.74 earnings per share. The firm’s quarterly revenue was down 1.8% on a year-over-year basis.

Starbucks Price Performance

Shares of NASDAQ:SBUX traded down $0.37 during trading on Thursday, hitting $74.07. The company had a trading volume of 4,078,312 shares, compared to its average volume of 9,066,187. The stock has a market cap of $83.86 billion, a price-to-earnings ratio of 20.51, a price-to-earnings-growth ratio of 1.49 and a beta of 0.97. The company has a fifty day simple moving average of $89.76 and a two-hundred day simple moving average of $94.11. Starbucks has a one year low of $72.67 and a one year high of $109.72.

Starbucks Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 31st. Shareholders of record on Friday, May 17th will be paid a dividend of $0.57 per share. The ex-dividend date is Thursday, May 16th. This represents a $2.28 annualized dividend and a yield of 3.08%. Starbucks’s payout ratio is currently 62.81%.

Insider Activity at Starbucks

In other news, CEO Michael Aaron Conway sold 3,250 shares of the firm’s stock in a transaction dated Monday, April 15th. The shares were sold at an average price of $85.39, for a total value of $277,517.50. Following the completion of the sale, the chief executive officer now owns 81,199 shares in the company, valued at approximately $6,933,582.61. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. In the last 90 days, insiders have sold 7,250 shares of company stock worth $651,738. Company insiders own 1.98% of the company’s stock.

Wall Street Analyst Weigh In

SBUX has been the topic of several recent analyst reports. Citigroup dropped their price objective on Starbucks from $95.00 to $85.00 and set a “neutral” rating on the stock in a research report on Wednesday. Gordon Haskett downgraded shares of Starbucks from a “buy” rating to a “hold” rating and set a $100.00 price objective on the stock. in a research report on Tuesday, January 16th. TD Cowen cut their target price on shares of Starbucks from $100.00 to $85.00 and set a “hold” rating for the company in a research report on Wednesday. Barclays lowered their price target on Starbucks from $116.00 to $112.00 and set an “overweight” rating on the stock in a report on Wednesday, January 31st. Finally, Wells Fargo & Company reduced their price objective on Starbucks from $105.00 to $90.00 and set an “overweight” rating for the company in a research report on Wednesday. Sixteen analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $100.39.

Starbucks Company Profile

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.