William Blair Weighs in on Starbucks Co.’s Q2 2018 Earnings (SBUX)

Starbucks Co. (NASDAQ:SBUX) – Equities research analysts at William Blair upped their Q2 2018 earnings per share (EPS) estimates for Starbucks in a note issued to investors on Friday, Zacks Investment Research reports. William Blair analyst S. Zackfia now anticipates that the coffee company will post earnings per share of $0.51 for the quarter, up from their previous forecast of $0.49. William Blair has a “Outperform” rating on the stock. William Blair also issued estimates for Starbucks’ Q3 2018 earnings at $0.67 EPS.

Several other research analysts also recently issued reports on the stock. Vetr downgraded shares of Starbucks from a “strong-buy” rating to a “buy” rating and set a $62.03 price objective on the stock. in a research report on Wednesday. Mizuho downgraded shares of Starbucks from a “buy” rating to a “neutral” rating and raised their price objective for the stock from $68.00 to $75.00 in a research report on Thursday, February 1st. They noted that the move was a valuation call. Zacks Investment Research raised shares of Starbucks from a “hold” rating to a “buy” rating and set a $65.00 price objective on the stock in a research report on Tuesday, January 30th. BidaskClub downgraded shares of Starbucks from a “hold” rating to a “sell” rating in a report on Tuesday, January 30th. Finally, Sanford C. Bernstein downgraded shares of Starbucks from an “outperform” rating to a “market perform” rating in a report on Monday, January 29th. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating and twenty-two have issued a buy rating to the company. Starbucks currently has an average rating of “Buy” and an average price target of $64.63.

Starbucks (NASDAQ SBUX) opened at $55.99 on Monday. Starbucks has a 52-week low of $52.58 and a 52-week high of $64.87. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.81 and a current ratio of 1.01. The stock has a market cap of $78,249.75, a price-to-earnings ratio of 18.48, a price-to-earnings-growth ratio of 1.54 and a beta of 0.69.

Starbucks (NASDAQ:SBUX) last issued its quarterly earnings data on Thursday, January 25th. The coffee company reported $0.58 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.57 by $0.01. Starbucks had a net margin of 19.28% and a return on equity of 56.35%. The company had revenue of $6.07 billion for the quarter, compared to the consensus estimate of $6.19 billion. During the same period last year, the firm posted $0.52 EPS. Starbucks’s revenue for the quarter was up 5.9% on a year-over-year basis.

Institutional investors and hedge funds have recently made changes to their positions in the business. Taylor Hoffman Wealth Management purchased a new stake in Starbucks in the fourth quarter valued at approximately $107,000. Sumitomo Mitsui Financial Group Inc. purchased a new stake in Starbucks in the third quarter valued at approximately $111,000. Prime Capital Investment Advisors LLC purchased a new stake in Starbucks in the fourth quarter valued at approximately $113,000. Jacobi Capital Management LLC grew its holdings in Starbucks by 6.9% in the second quarter. Jacobi Capital Management LLC now owns 2,007 shares of the coffee company’s stock valued at $116,000 after purchasing an additional 129 shares during the period. Finally, Gradient Investments LLC purchased a new stake in Starbucks in the fourth quarter valued at approximately $117,000. Institutional investors own 71.92% of the company’s stock.

In other Starbucks news, Director Craig Weatherup sold 56,666 shares of Starbucks stock in a transaction dated Monday, November 20th. The shares were sold at an average price of $56.73, for a total transaction of $3,214,662.18. Following the completion of the transaction, the director now owns 56,666 shares in the company, valued at $3,214,662.18. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Howard D. Schultz sold 25,000 shares of Starbucks stock in a transaction dated Tuesday, November 21st. The stock was sold at an average price of $57.28, for a total transaction of $1,432,000.00. Following the transaction, the insider now owns 29,798,282 shares of the company’s stock, valued at approximately $1,706,845,592.96. The disclosure for this sale can be found here. Insiders sold 329,492 shares of company stock valued at $18,859,801 in the last quarter. Company insiders own 3.40% of the company’s stock.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 23rd. Investors of record on Thursday, February 8th will be paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 2.14%. The ex-dividend date of this dividend is Wednesday, February 7th. Starbucks’s dividend payout ratio (DPR) is 39.60%.

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Starbucks Company Profile

Starbucks Corporation (Starbucks) is a roaster, marketer and retailer of coffee. As of October 2, 2016, the Company operated in 75 countries. The Company operates through four segments: Americas, which is inclusive of the United States, Canada, and Latin America; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA), and Channel Development.

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