What to Expect From Starbucks Earnings

Starbucks Corp. (NASDAQ: SBUX) is scheduled to report its fiscal first-quarter financial results after the markets close on Thursday. The consensus estimates from Thomson Reuters call for $0.45 in earnings per share (EPS) on revenue of $5.39 billion. In the same period of the previous year, it posted EPS of $0.40 and $4.80 billion in revenue.

This company has taken over the civilized world’s coffee market and wants to do the same with tea (and maybe even in wine). Goldman Sachs likes the wide moat that Starbucks has built up. It sees huge overseas expansion possibilities still awaiting in key growth markets.

This company dominates the retail coffee business in the United States, and international growth is helping to boost earnings. In fact, the brand has become so ubiquitous that consumers often just say “Let’s grab a Starbucks.” Despite a pricing point that is higher than others, the company continues to add new items at its stores that have been received well. This is another company that is continuing to grow.

Ahead of the earnings report a few analysts weighed in on the coffee giant:

  • Oppenheimer reiterated an Outperform rating with a $65 price target.
  • Deutsche Bank reiterated a Buy rating with a $70 price target,
  • Wedbush reiterated an Outperform rating with a $70 price target.
  • RBC Capital reiterated an Outperform rating with a $68 price target.
  • Jefferies has a Buy rating.

So far in 2016, Starbucks has outperformed the broad markets, with the stock down 5.2% year to date. However, over the past 52 weeks this stock is up about 42%.

Shares of Starbucks were trading up 2.8% at $58.53 on Thursday, with a consensus analyst price target of $68.09 and a 52-week trading range of $40.45 to $64.00.