Brokerages Expect Starbucks Co. (SBUX) to Post $0.57 Earnings Per Share

Wall Street brokerages expect Starbucks Co. (NASDAQ:SBUX) to post earnings of $0.57 per share for the current quarter, Zacks reports. Nine analysts have issued estimates for Starbucks’ earnings. The highest EPS estimate is $0.58 and the lowest is $0.55. Starbucks reported earnings per share of $0.52 in the same quarter last year, which indicates a positive year over year growth rate of 9.6%. The business is scheduled to announce its next earnings results after the market closes on Thursday, January 25th.

On average, analysts expect that Starbucks will report full-year earnings of $2.38 per share for the current fiscal year, with EPS estimates ranging from $2.27 to $2.56. For the next financial year, analysts forecast that the company will post earnings of $2.72 per share, with EPS estimates ranging from $2.56 to $3.00. Zacks’ EPS averages are a mean average based on a survey of sell-side research analysts that that provide coverage for Starbucks.

Starbucks (NASDAQ:SBUX) last released its earnings results on Thursday, November 2nd. The coffee company reported $0.55 earnings per share for the quarter, hitting the consensus estimate of $0.55. The company had revenue of $5.70 billion for the quarter, compared to the consensus estimate of $5.81 billion. Starbucks had a net margin of 12.89% and a return on equity of 53.34%. Starbucks’s revenue was down .2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.56 EPS.

Several research firms have weighed in on SBUX. Credit Suisse Group dropped their target price on shares of Starbucks from $56.00 to $54.00 and set a “neutral” rating on the stock in a research report on Friday, November 3rd. Deutsche Bank reissued a “buy” rating and set a $67.00 target price on shares of Starbucks in a research report on Monday, October 9th. OTR Global raised shares of Starbucks to a “positive” rating in a research report on Thursday, October 26th. BMO Capital Markets reissued a “hold” rating on shares of Starbucks in a research report on Thursday, October 5th. Finally, Vetr downgraded shares of Starbucks from a “strong-buy” rating to a “buy” rating and set a $64.32 target price on the stock. in a research report on Monday, November 13th. One investment analyst has rated the stock with a sell rating, twelve have issued a hold rating, twenty have assigned a buy rating and one has issued a strong buy rating to the stock. The stock has an average rating of “Buy” and an average target price of $63.54.

In other news, SVP Paul Mutty sold 3,000 shares of the stock in a transaction dated Tuesday, November 14th. The shares were sold at an average price of $56.95, for a total value of $170,850.00. Following the completion of the sale, the senior vice president now directly owns 10,438 shares in the company, valued at $594,444.10. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Howard D. Schultz sold 290,176 shares of the stock in a transaction dated Wednesday, November 15th. The shares were sold at an average price of $57.03, for a total transaction of $16,548,737.28. Following the completion of the sale, the insider now owns 29,872,564 shares of the company’s stock, valued at $1,703,632,324.92. The disclosure for this sale can be found here. Insiders have sold 497,808 shares of company stock valued at $28,559,521 over the last 90 days. 3.40% of the stock is currently owned by company insiders.

Several hedge funds and other institutional investors have recently modified their holdings of SBUX. Fulton Bank N.A. raised its position in shares of Starbucks by 12.1% in the second quarter. Fulton Bank N.A. now owns 15,799 shares of the coffee company’s stock valued at $921,000 after buying an additional 1,706 shares during the last quarter. Tompkins Financial Corp grew its holdings in shares of Starbucks by 0.8% in the second quarter. Tompkins Financial Corp now owns 21,128 shares of the coffee company’s stock valued at $1,232,000 after purchasing an additional 177 shares during the period. Lincoln Capital LLC grew its holdings in shares of Starbucks by 0.5% in the second quarter. Lincoln Capital LLC now owns 153,309 shares of the coffee company’s stock valued at $8,939,000 after purchasing an additional 744 shares during the period. Confluence Investment Management LLC grew its holdings in shares of Starbucks by 49.9% in the second quarter. Confluence Investment Management LLC now owns 708,542 shares of the coffee company’s stock valued at $41,315,000 after purchasing an additional 235,920 shares during the period. Finally, GW&K Investment Management LLC grew its holdings in shares of Starbucks by 6.5% in the second quarter. GW&K Investment Management LLC now owns 241,645 shares of the coffee company’s stock valued at $14,090,000 after purchasing an additional 14,712 shares during the period. Institutional investors and hedge funds own 70.72% of the company’s stock.

Starbucks (NASDAQ:SBUX) traded up $0.17 during trading hours on Friday, reaching $61.26. 8,252,794 shares of the company’s stock traded hands, compared to its average volume of 7,810,000. The stock has a market cap of $87,400.00, a P/E ratio of 31.10, a PEG ratio of 1.65 and a beta of 0.76. Starbucks has a 12 month low of $52.58 and a 12 month high of $64.87. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.93 and a current ratio of 1.25.

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About Starbucks

Starbucks Corporation (Starbucks) is a roaster, marketer and retailer of coffee. As of October 2, 2016, the Company operated in 75 countries. The Company operates through four segments: Americas, which is inclusive of the United States, Canada, and Latin America; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA), and Channel Development.

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