Brokerages Anticipate Starbucks Co. (NASDAQ:SBUX) Will Announce Earnings of $0.73 Per Share

Equities research analysts predict that Starbucks Co. (NASDAQ:SBUX) will report earnings per share (EPS) of $0.73 for the current fiscal quarter, according to Zacks Investment Research. Ten analysts have provided estimates for Starbucks’ earnings, with the lowest EPS estimate coming in at $0.70 and the highest estimate coming in at $0.79. Starbucks posted earnings per share of $0.62 during the same quarter last year, which suggests a positive year-over-year growth rate of 17.7%. The business is scheduled to announce its next earnings report on Thursday, July 25th.

According to Zacks, analysts expect that Starbucks will report full year earnings of $2.78 per share for the current fiscal year, with EPS estimates ranging from $2.75 to $2.80. For the next year, analysts expect that the business will report earnings of $3.09 per share, with EPS estimates ranging from $3.02 to $3.15. Zacks Investment Research’s earnings per share calculations are an average based on a survey of analysts that cover Starbucks.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings data on Thursday, April 25th. The coffee company reported $0.60 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.56 by $0.04. Starbucks had a negative return on equity of 494.61% and a net margin of 11.87%. The firm had revenue of $6.31 billion for the quarter, compared to the consensus estimate of $6.33 billion. During the same quarter in the previous year, the company earned $0.53 EPS. The business’s revenue for the quarter was up 4.5% compared to the same quarter last year.

Several research firms have weighed in on SBUX. Piper Jaffray Companies lifted their target price on Starbucks from $77.00 to $82.00 and gave the company a “neutral” rating in a research note on Monday. They noted that the move was a valuation call. Evercore ISI began coverage on Starbucks in a research note on Tuesday. They set an “in-line” rating and a $82.00 target price on the stock. BidaskClub raised Starbucks from a “buy” rating to a “strong-buy” rating in a research note on Saturday, May 4th. Telsey Advisory Group reaffirmed a “market perform” rating and set a $80.00 target price (up previously from $70.00) on shares of Starbucks in a research note on Monday, May 6th. Finally, Zacks Investment Research raised Starbucks from a “hold” rating to a “buy” rating and set a $86.00 target price on the stock in a research note on Wednesday, May 15th. One analyst has rated the stock with a sell rating, fourteen have assigned a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $74.37.

NASDAQ:SBUX opened at $82.93 on Monday. The company has a debt-to-equity ratio of 7.73, a quick ratio of 0.67 and a current ratio of 0.94. Starbucks has a fifty-two week low of $47.37 and a fifty-two week high of $83.67. The stock has a market cap of $99.77 billion, a price-to-earnings ratio of 34.27, a price-to-earnings-growth ratio of 2.31 and a beta of 0.50.

The company also recently declared a quarterly dividend, which was paid on Friday, May 24th. Investors of record on Thursday, May 9th were paid a $0.36 dividend. The ex-dividend date of this dividend was Wednesday, May 8th. This represents a $1.44 annualized dividend and a dividend yield of 1.74%. Starbucks’s payout ratio is 59.50%.

In related news, insider John Culver sold 63,937 shares of the business’s stock in a transaction that occurred on Thursday, May 16th. The stock was sold at an average price of $78.04, for a total value of $4,989,643.48. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Myron E. Ullman III sold 9,973 shares of the business’s stock in a transaction that occurred on Monday, June 3rd. The stock was sold at an average price of $76.12, for a total value of $759,144.76. The disclosure for this sale can be found here. Insiders own 3.98% of the company’s stock.

Institutional investors and hedge funds have recently bought and sold shares of the stock. Cipher Capital LP purchased a new stake in Starbucks in the 4th quarter worth about $2,261,000. Mark Sheptoff Financial Planning LLC purchased a new stake in Starbucks in the 4th quarter worth about $32,000. Mackay Shields LLC raised its position in Starbucks by 55.0% in the 4th quarter. Mackay Shields LLC now owns 625,131 shares of the coffee company’s stock worth $40,259,000 after purchasing an additional 221,699 shares during the period. Hamel Associates Inc. raised its position in Starbucks by 2.6% in the 1st quarter. Hamel Associates Inc. now owns 53,480 shares of the coffee company’s stock worth $3,976,000 after purchasing an additional 1,375 shares during the period. Finally, HL Financial Services LLC grew its stake in Starbucks by 2.1% in the 1st quarter. HL Financial Services LLC now owns 213,984 shares of the coffee company’s stock worth $15,908,000 after acquiring an additional 4,398 shares in the last quarter. Hedge funds and other institutional investors own 71.67% of the company’s stock.

About Starbucks

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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