What to Expect From Starbucks Earnings

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.