Oppenheimer Analysts Reduce Earnings Estimates for Starbucks Co. (SBUX)

Starbucks Co. (NASDAQ:SBUX) – Equities research analysts at Oppenheimer cut their Q2 2018 earnings per share (EPS) estimates for Starbucks in a note issued to investors on Friday. Oppenheimer analyst B. Bittner now anticipates that the coffee company will earn $0.52 per share for the quarter, down from their previous estimate of $0.54. Oppenheimer currently has a “Buy” rating and a $66.00 price objective on the stock. Oppenheimer also issued estimates for Starbucks’ Q3 2018 earnings at $0.66 EPS and FY2019 earnings at $2.77 EPS.

Starbucks (NASDAQ:SBUX) last issued its earnings results on Thursday, January 25th. The coffee company reported $0.58 EPS for the quarter, beating the consensus estimate of $0.57 by $0.01. The company had revenue of $6.07 billion during the quarter, compared to analysts’ expectations of $6.19 billion. Starbucks had a net margin of 19.28% and a return on equity of 56.65%. The business’s revenue for the quarter was up 5.9% compared to the same quarter last year. During the same period in the previous year, the company earned $0.52 EPS.

SBUX has been the topic of a number of other reports. UBS Group reduced their price objective on shares of Starbucks from $67.00 to $64.00 and set a “buy” rating on the stock in a research note on Friday, November 3rd. Mizuho set a $75.00 target price on shares of Starbucks and gave the stock a “buy” rating in a research note on Wednesday, November 1st. Morgan Stanley increased their target price on shares of Starbucks from $62.00 to $67.00 and gave the stock an “overweight” rating in a research note on Friday, November 10th. Vetr downgraded shares of Starbucks from a “strong-buy” rating to a “buy” rating and set a $60.91 price objective on the stock. in a report on Thursday, November 2nd. Finally, Deutsche Bank lowered their price objective on shares of Starbucks to $62.00 and set a “buy” rating on the stock in a report on Friday, November 3rd. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating and twenty-three have assigned a buy rating to the company’s stock. Starbucks presently has an average rating of “Buy” and an average price target of $64.29.

Starbucks (NASDAQ SBUX) opened at $57.99 on Monday. The company has a current ratio of 1.25, a quick ratio of 0.93 and a debt-to-equity ratio of 0.72. Starbucks has a 12-month low of $52.58 and a 12-month high of $64.87. The stock has a market cap of $82,510.00, a P/E ratio of 19.14, a P/E/G ratio of 1.75 and a beta of 0.76.

A number of large investors have recently modified their holdings of the business. Ken Stern & Associates Inc. boosted its position in shares of Starbucks by 0.4% in the second quarter. Ken Stern & Associates Inc. now owns 5,662 shares of the coffee company’s stock valued at $330,000 after acquiring an additional 23 shares during the period. Spectrum Management Group Inc. boosted its position in shares of Starbucks by 0.3% in the second quarter. Spectrum Management Group Inc. now owns 10,630 shares of the coffee company’s stock valued at $620,000 after acquiring an additional 30 shares during the period. Risk Paradigm Group LLC boosted its position in shares of Starbucks by 0.7% in the second quarter. Risk Paradigm Group LLC now owns 7,470 shares of the coffee company’s stock valued at $436,000 after acquiring an additional 50 shares during the period. Valley National Advisers Inc. boosted its position in shares of Starbucks by 2.8% in the second quarter. Valley National Advisers Inc. now owns 2,089 shares of the coffee company’s stock valued at $122,000 after acquiring an additional 57 shares during the period. Finally, GHP Investment Advisors Inc. boosted its position in shares of Starbucks by 0.8% in the second quarter. GHP Investment Advisors Inc. now owns 7,657 shares of the coffee company’s stock valued at $446,000 after acquiring an additional 64 shares during the period. Hedge funds and other institutional investors own 70.76% of the company’s stock.

In other Starbucks news, Director Joshua Cooper Ramo sold 60,000 shares of the stock in a transaction dated Thursday, December 7th. The shares were sold at an average price of $59.43, for a total transaction of $3,565,800.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Howard D. Schultz sold 290,176 shares of the stock in a transaction dated Wednesday, November 15th. The stock was sold at an average price of $57.03, for a total transaction of $16,548,737.28. Following the transaction, the insider now owns 29,872,564 shares of the company’s stock, valued at approximately $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 in the last 90 days. 3.40% of the stock is currently owned by corporate insiders.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 23rd. Investors of record on Thursday, February 8th will be issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 2.07%. Starbucks’s dividend payout ratio (DPR) is presently 39.60%.

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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.

Earnings History and Estimates for Starbucks (NASDAQ:SBUX)

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