Zacks: Brokerages Expect Starbucks Co. (NASDAQ:SBUX) Will Announce Earnings of $0.79 Per Share

Wall Street brokerages predict that Starbucks Co. (NASDAQ:SBUX) will announce $0.79 earnings per share for the current fiscal quarter, according to Zacks. Nine analysts have provided estimates for Starbucks’ earnings, with estimates ranging from $0.72 to $0.83. Starbucks reported earnings of $0.61 per share in the same quarter last year, which indicates a positive year over year growth rate of 29.5%. The company is scheduled to report its next quarterly earnings report 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 year, analysts expect that the company will report earnings of $4.02 per share, with EPS estimates ranging from $3.88 to $4.14. Zacks Investment Research’s EPS calculations are an average based on a survey of research analysts that cover Starbucks.

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

SBUX has been the subject of a number of research analyst reports. Stephens raised shares of Starbucks from an “equal weight” rating to an “overweight” rating and increased their target price for the company from $118.00 to $130.00 in a report on Monday, November 1st. BMO Capital Markets dropped their price objective on shares of Starbucks from $140.00 to $135.00 and set an “outperform” rating for the company in a research note on Friday, October 29th. Wedbush dropped their price objective on shares of Starbucks from $132.00 to $128.00 and set an “outperform” rating for the company in a research note on Friday, October 29th. Oppenheimer decreased their target price on shares of Starbucks from $140.00 to $130.00 and set an “outperform” rating on the stock in a research report on Friday, October 29th. Finally, Wells Fargo & Company decreased their target price on shares of Starbucks from $135.00 to $122.00 and set an “overweight” rating on the stock in a research report on Friday, October 29th. Ten analysts have rated the stock with a hold rating and nineteen have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and an average price target of $123.00.

Starbucks stock traded up $0.39 during mid-day trading on Thursday, reaching $113.97. The company had a trading volume of 4,464,304 shares, compared to its average volume of 6,062,163. Starbucks has a 1 year low of $95.92 and a 1 year high of $126.32. The company has a market capitalization of $134.38 billion, a P/E ratio of 32.10, a P/E/G ratio of 1.60 and a beta of 0.84. The stock’s 50-day simple moving average is $112.55 and its 200-day simple moving average is $114.44.

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

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

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Verition Fund Management LLC bought a new stake in shares of Starbucks during the 1st quarter valued at about $242,000. Axiom Investment Management LLC bought a new stake in shares of Starbucks during the 1st quarter valued at about $311,000. Stonnington Group LLC bought a new stake in shares of Starbucks during the 1st quarter valued at about $379,000. Childress Capital Advisors LLC boosted its stake in Starbucks by 91.8% during the 1st quarter. Childress Capital Advisors LLC now owns 2,342 shares of the coffee company’s stock valued at $255,000 after purchasing an additional 1,121 shares during the period. Finally, Pendal Group Limited boosted its stake in Starbucks by 5.6% during the 1st quarter. Pendal Group Limited now owns 7,893 shares of the coffee company’s stock valued at $862,000 after purchasing an additional 419 shares during the period. 68.27% of the stock is owned by institutional investors.

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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