Q4 Preview: Starbucks (SBUX) Looks to Give Investors Boost of Caffeine


Shutterstock photo

Shares of Starbucks Corp. ( SBUX ) are up $0.75 or 2.58 percent to $29.84 in midday market movement on Thursday ahead of the company's fourth-quarter earnings release scheduled for after the closing bell.

The coffee chain is expected by analysts to report earnings of $0.32 per share on revenue of $2.77 billion.

In the fourth quarter, Starbucks reported earnings of $0.29 per share, in line with the analyst estimate. The company reported fourth-quarter revenue of $2.61 million, beating the consensus of $2.55 billion.

Since the start of the fourth quarter, shares of Starbucks are up $4.73 or 18.78 percent. Year-to-date the stock is up $6.85 or 29.71 percent.

A valuation shows that Starbucks is going for a forward P/E of 27.98x full year 2010 estimates.

Data from Bloomberg shows that 11 analysts have a Buy rating on the stock, 9 have a Hold and zero have a Sell. The average analyst price target on Starbucks is $14.50 with a target range of $13 to $16.

Analyst Comments

On October 14, UBS maintained its Buy rating on Starbucks while raising its price target from $29 to $31.

UBS analyst says, "We are reiterating our bullish stance on Starbucks sales ahead of earnings and raising our F4Q US retail same store sales ( SSS ) estimate from 6% to 7% and our EPS estimate from $0.32 to $0.33 (+34% YOY, Street $0.32)-above guidance of $0.31-$0.32. We also believe the company's FY11 guidance for low- to mid-single digit SSS growth could prove conservative as SBUX looks to take pricing to offset higher coffee commodity costs."

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
More Headlines for: SBUX , SSS

More from StreetInsider.com




Market News
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com