Starbucks Co. to Post Q2 2018 Earnings of $0.56 Per Share, Wedbush Forecasts (SBUX)

Starbucks Co. (NASDAQ:SBUX) – Stock analysts at Wedbush lifted their Q2 2018 earnings per share (EPS) estimates for Starbucks in a report issued on Friday. Wedbush analyst N. Setyan now forecasts that the coffee company will post earnings of $0.56 per share for the quarter, up from their prior estimate of $0.52. Wedbush currently has a “Buy” rating and a $70.00 target price on the stock. Wedbush also issued estimates for Starbucks’ FY2018 earnings at $2.50 EPS, Q1 2019 earnings at $0.68 EPS, Q2 2019 earnings at $0.63 EPS, Q3 2019 earnings at $0.76 EPS, Q4 2019 earnings at $0.78 EPS and FY2019 earnings at $2.84 EPS.

Starbucks (NASDAQ:SBUX) last posted its quarterly 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. Starbucks had a net margin of 19.28% and a return on equity of 56.65%. The business had revenue of $6.07 billion for the quarter, compared to analysts’ expectations of $6.19 billion. During the same period in the previous year, the company posted $0.52 EPS. Starbucks’s revenue was up 5.9% on a year-over-year basis.

A number of other equities research analysts have also recently issued reports on the stock. OTR Global upgraded shares of Starbucks to a “positive” rating in a report on Thursday, October 26th. Morgan Stanley upped their price objective on shares of Starbucks from $62.00 to $67.00 and gave the stock an “overweight” rating in a report on Friday, November 10th. Tigress Financial started coverage on shares of Starbucks in a report on Wednesday, December 27th. They issued a “buy” rating for the company. Vetr cut shares of Starbucks from a “buy” rating to a “hold” rating and set a $61.72 price objective for the company. in a report on Monday, January 8th. Finally, Cowen reiterated an “outperform” rating and issued a $62.00 price objective (down from $63.00) on shares of Starbucks in a report on Tuesday, October 10th. One equities 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 stock. The stock has a consensus rating of “Buy” and a consensus target price of $64.29.

Starbucks (SBUX) opened at $57.99 on Monday. The company has a market cap of $82,510.00, a price-to-earnings ratio of 19.14, a PEG ratio of 1.75 and a beta of 0.76. Starbucks has a fifty-two week low of $52.58 and a fifty-two week 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.

The company also recently announced a quarterly dividend, which will be paid on Friday, February 23rd. Shareholders of record on Thursday, February 8th will be given 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 is 39.60%.

In other news, SVP Paul Mutty sold 3,000 shares of the company’s stock in a transaction dated Tuesday, November 14th. The shares were sold at an average price of $56.95, for a total transaction of $170,850.00. Following the completion of the transaction, the senior vice president now owns 10,438 shares of the company’s stock, valued at $594,444.10. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Joshua Cooper Ramo sold 60,000 shares of the company’s 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 disclosure for this sale can be found here. In the last three months, insiders have sold 497,808 shares of company stock valued at $28,559,521. Company insiders own 3.40% of the company’s stock.

Several institutional investors and hedge funds have recently made changes to their positions in SBUX. Sumitomo Mitsui Financial Group Inc. acquired a new position in shares of Starbucks during the third quarter valued at about $111,000. Jacobi Capital Management LLC raised its position in Starbucks by 6.9% in the second quarter. Jacobi Capital Management LLC now owns 2,007 shares of the coffee company’s stock worth $116,000 after purchasing an additional 129 shares in the last quarter. Valley National Advisers Inc. raised its position in Starbucks by 2.8% in the second quarter. Valley National Advisers Inc. now owns 2,089 shares of the coffee company’s stock worth $122,000 after purchasing an additional 57 shares in the last quarter. Shine Investment Advisory Services Inc. acquired a new position in Starbucks in the second quarter worth about $128,000. Finally, Horan Capital Advisors LLC. acquired a new position in Starbucks in the third quarter worth about $131,000. 70.76% of the stock is owned by institutional investors and hedge funds.

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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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