Starbucks Corp. (NASDAQ: SBUX) is scheduled to report its fiscal fourth-quarter financial results after the markets close on Tuesday. The consensus estimates call for $0.43 in earnings per share (EPS) on $4.90 billion in revenue. In the same period of the previous year, the the coffee giant posted EPS of $0.37 and revenue of $4.18 billion.
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 beat Wall Street earnings estimates for the previous quarter.
Cowen recently pointed to the strong growth in card loads, which was up 20%, and growth in the My Starbucks Rewards program, which was up 28%. The firm also cited the digital initiatives, which helped to drive same-store-sales growth in the Americas up a solid 8%. Guidance for the year was raised to reflect last quarter’s solid beat and the current fourth-quarter guidance was maintained.
Starbucks has a $90 billion market cap. Its 2014 global revenue was $16.5 billion, and it generated $3.1 billion in operating income and almost $2.1 billion in net income. Starbucks has a dividend that is not just safe, but one that can grow for the next decade.
Its dividend history dates back only to 2010, and that initial five-cent dividend has now risen to $0.16 and is due to be hiked again soon. The current $0.64 annualized dividend payment compares to operating earnings of $1.33 per share a year ago. It also compares to a 2015 expected $1.59 per share, as well as $1.88 per share for 2016.
Ahead of its earnings a few analysts weighed in on Starbucks:
- Wedbush reiterated an Outperform rating with a $70 price target.
- Barclays reiterated an Equal Weight rating with a $54 price target.
- Sanford Bernstein reiterated a Buy rating with a $70 price target.
So far in 2015, Starbucks has vastly outperformed the market, with the stock up 56%, while over the past 52 weeks the stock is up 67%.
Shares of Starbucks were last seen Thursday trading down 1.6% at 62.50, with a consensus analyst price target of $64.13 and a 52-week trading range of $37.46 to $63.84.
ALSO READ: The 10 Most Profitable Companies in the World
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
