What to Expect From Starbucks Earnings
Starbucks will report its fiscal fourth-quarter and annual earnings Thursday after the U.S. markets close.
Starbucks Corp. (NASDAQ: SBUX) will report its fiscal fourth-quarter and annual earnings Thursday after the U.S. markets close. Thomson Reuters has fourth-quarter consensus estimates of $0.74 in earnings per share and $4.23 billion in revenue, as well as full-year estimates of $2.67 in earnings per share and $16.50 billion in revenue.
In the fourth quarter of the previous year, Starbucks reported $0.63 in earnings per share and revenue of $3.80 billion. For the full year, the company had $2.26 in earnings per share and $14.89 billion in revenue.
Starbucks announced prior to earnings that it will roll out the first phase of a multiyear investment initially by giving all baristas and shift supervisors a pay increase. It will later go on to offer increased wages correlating with employee tenure, and employees will be given an annual pay review when they are eligible for an increase.
Apart from the imminent wage increase, employees will offered promotional opportunities for providing support within their stores.
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Zacks reiterated a Neutral rating for Starbucks with a price target of $81 on September 10. Citigroup reiterated a Buy rating and raised its price target to $91 from $84 on August 4.
Starbucks tested the 50-day moving average for over a month, spanning early August to mid-September. Following this period, Starbucks dropped under the 50-day moving average, which acted as resistance until shares crossed over, riding its strong rally in mid-October.
Shares of Starbucks were trading down about 0.5% at $76.59 in the noon hour on Wednesday. They have a consensus analyst price target of $90.55 and a 52-week trading range of $67.93 to $82.50. Starbucks has a market cap of $57 billion.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
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