Starbucks (NASDAQ:SBUX) Announces Quarterly Earnings Results

Starbucks (NASDAQ:SBUX) released its quarterly 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. The company had revenue of $8.56 billion for the quarter, compared to the consensus estimate of $9.12 billion. Starbucks had a negative return on equity of 50.76% and a net margin of 11.70%. The business’s revenue was down 1.8% compared to the same quarter last year. During the same quarter last year, the company posted $0.74 EPS.

Starbucks Price Performance

SBUX stock opened at $88.49 on Wednesday. The business has a fifty day moving average price of $90.17 and a 200 day moving average price of $94.25. Starbucks has a fifty-two week low of $84.29 and a fifty-two week high of $115.48. The stock has a market capitalization of $100.19 billion, a price-to-earnings ratio of 23.66, a P/E/G ratio of 1.49 and a beta of 0.97.

Starbucks Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, May 31st. Stockholders of record on Friday, May 17th will be issued a $0.57 dividend. The ex-dividend date is Thursday, May 16th. This represents a $2.28 dividend on an annualized basis and a dividend yield of 2.58%. Starbucks’s payout ratio is presently 60.96%.

Insider Activity at Starbucks

In related news, CEO Michael Aaron Conway sold 3,250 shares of the firm’s stock in a transaction on Monday, April 15th. The stock was sold at an average price of $85.39, for a total transaction of $277,517.50. Following the completion of the sale, the chief executive officer now directly owns 81,199 shares of the company’s stock, valued at approximately $6,933,582.61. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders sold 7,250 shares of company stock valued at $651,738 in the last three months. Corporate insiders own 1.98% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on SBUX. Stifel Nicolaus decreased their price target on Starbucks from $102.00 to $90.00 and set a “hold” rating for the company in a research note on Thursday, April 11th. Stephens reiterated an “equal weight” rating and set a $110.00 price target on shares of Starbucks in a research note on Wednesday, January 31st. Citigroup decreased their target price on Starbucks from $102.00 to $95.00 and set a “neutral” rating for the company in a research note on Friday, April 12th. Oppenheimer restated a “market perform” rating on shares of Starbucks in a research note on Friday, April 19th. Finally, Wells Fargo & Company restated an “overweight” rating and set a $105.00 target price on shares of Starbucks in a research note on Monday, April 1st. Sixteen research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $103.86.

About Starbucks

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.