Starbucks Corp. (NASDAQ: SBUX) is scheduled to release its fiscal first-quarter financial results after the markets close on Thursday. The consensus estimates call for $0.65 in earnings per share (EPS) and $6.49 billion in revenue. In the same period of last year, the coffee chain said it had $0.65 in EPS and $6.07 billion in revenue.
In the most recent quarter, the coffee giant announced that it has plans to expand coffee delivery across the United States with UberEats as part of a broader strategy to try to reach more customers. Starbucks began testing delivery in Miami with UberEats in September and will begin offering it in nearly a quarter of its more than 8,000 U.S. company-operated stores in 2019.
Also during the quarter, Starbucks announced that it had plans to lay off approximately 5% of its global corporate workforce (not including employees who work in its cafes) as it seeks to become a more nimble company. As for a specific number, the firm said it will lay off 350 employees. The areas affected include marketing, creative, product, technology and store development.
Overall, Starbucks has performed more or less in line with the broad markets, with its stock up about 3% year to date. In the past 52 weeks, the stock is actually up closer to 8%.
A few analysts weighed in on Starbucks ahead of the report:
- BMO Capital Markets has a Market Perform rating and a $60 price target.
- Goldman Sachs has a Neutral rating with a $68 price target.
- Mizuho has a Buy rating with a $75 target price.
- RBC has an Outperform rating and a $74 target price.
- KeyCorp has a Buy rating with a $70 price target.
- Wells Fargo has an Outperform rating with a $73 target.
Shares of Starbucks were last seen at $66.56, with a 52-week range of $47.37 to $68.98. The stock has a consensus analyst price target of $68.44.