Starbucks Corp. (NASDAQ: SBUX) is scheduled to report its fiscal second-quarter earnings Thursday after the markets close. Thomson Reuters has consensus estimates of $0.33 in earnings per share (EPS) and revenue of $4.53 billion. In the same period of last year, the company posted EPS of $0.28 $3.87 billion in revenue.
This company has continually reinvented itself — not only its menu items, but its retail distribution, new partnerships, new online ordering options and social media and mobile strategies. According to Argus, Starbucks is more attuned to social issues than any comparably sized public corporation. Starbucks has been in the forefront of fair compensation initiatives for coffee field workers. And the recent pledge to pay baristas’ college costs resounded across the generations to include beleaguered boomers burdened with their offspring’s college debt.
Recently Starbucks conducted a two-for-one stock split. Shares began trading on a split-adjusted basis on April 9.
Stock splits are often called a gimmick, but think about this. If you bought 100 shares at the Starbucks initial public offering and forgot that you owned them, after six splits that 100 shares would have turned out to be 6,400 shares. Not bad, even at the current price.
On a split-adjusted basis, the company’s previously communicated earnings guidance equates to a range of $0.32 to $0.33 per share for the fiscal second quarter, and a range of $1.55 to $1.57 per share for the full 2015 fiscal year. Due to this adjustment, the company is updating earnings targets.
ALSO READ: 5 Cheap Large Cap Stocks to Buy in a Pricey Stock Market
In the week ahead of earnings Starbucks received a few analyst calls:
- Barclays had an Equal Weight rating with a price target of $45, implying a slight downside of 7.4%.
- Guggenheim initiated coverage with a Buy rating and a price target of $56, implying upside of 15.3%.
- BMO Capital Markets initiated coverage with an Outperform rating and a price target of $56.
- Cowen initiated coverage with an Outperform rating and a price target of $56.
- RBC Capital reiterated an Outperform rating with a price target of $50.
Overall, it seems like most of the recent calls are positive on Starbucks. The stock has a consensus analyst price target of $50.94, which only implies upside of 4.9%.
Shares of Starbucks were up 0.7% at $48.67 in Thursday morning trading, in a 52-week trading range of $34.57 to $49.60. The stock currently trades at nearly 31 times 2015 earnings.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.