Shares of Starbucks Corp. (
) 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
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
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
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 (
) 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."