Q2 Preview: Analysts Looking for Blowout Quarter from Starbucks (SBUX)


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A buzz has been surrounding shares of Starbucks (Nasdaq: SBUX) Thursday ahead of the company's second-quarter earnings report, expected out just after the closing bell this afternoon. While the stock traded slightly higher for the majority of the intraday session, a strong move higher in the broader stock market has pushed Starbucks shares about 2.5 percent heading into the results.

Analysts on the Street are expecting Starbucks to post a quarterly profit of 39 cents per share on sales of $3.18 billion. The company issued second-quarter 2011 EPS of 34 cents on sales of $2.79 billion and first-quarter 2012 EPS of 50 cents on sales of $3.44 billion.

Starbucks shares have rallied about 9 percent over the last month, and are up nearly 33 percent so far in 2012.

Data from StreetInsider.com's Earnings History section shows the company has topped analyst estimates by about 2.6 percent over the last four quarters.

Analyst Ratings data on Starbucks shows 14 sell-side firms with a Buy rating on the stock, two with a Neutral rating, and none with a Sell rating. Notably, the average analyst price target on the stock is around $60, right at the level shares are currently trading.

Analyst Comments:

  • Goldman issued a note this morning which pointed to recent data showing Starbucks' dollar share in the K-Cup market is now at a new high around 16 percent. Amid the data point and ahead of the quarterly print, the firm reiterated a Conviction Buy on Starbucks shares. Goldman said the company is sitting at "a key inflection point with emerging markets and single-serve products driving a new multi-year period of growth."

    The firm is modeling for quarterly earnings of 41 cents per share, "driven by our forecast for 10% US SSS (vs. 8% consensus)." Goldman said to anticipate raised FY12 guidance.

  • Deutsche Bank sees EPS of 39 cents on sales of $3.18 billion. The firm said it will be looking for: an update on FY13 coffee contracts, more color on EMEA margin improvement initiatives, more detail on new single-serve platform, Verismo, updated sales trends and market share for K-Cups, and updates on sales-driving initiatives like remodels, Blonde, the alcohol test, and energy drinks.

    The firm maintains a Buy rating and $61 target on the stock.
Stay tuned to our Earnings category to get the Starbucks' results within seconds of the official release.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks

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