William Blair Comments on Starbucks’ Q3 2018 Earnings (SBUX)

Starbucks (NASDAQ:SBUX) – Equities researchers at William Blair lifted their Q3 2018 earnings per share estimates for shares of Starbucks in a note issued to investors on Monday, May 7th, Zacks Investment Research reports. William Blair analyst S. Zackfia now expects that the coffee company will post earnings per share of $0.66 for the quarter, up from their previous forecast of $0.65. William Blair has a “Outperform” rating on the stock. William Blair also issued estimates for Starbucks’ FY2019 earnings at $2.74 EPS.

Starbucks (NASDAQ:SBUX) last announced its quarterly earnings data on Thursday, April 26th. The coffee company reported $0.53 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.53. The company had revenue of $6.03 billion for the quarter, compared to analysts’ expectations of $5.93 billion. Starbucks had a net margin of 18.71% and a return on equity of 60.33%. The business’s revenue was up 13.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.45 EPS.

A number of other brokerages also recently commented on SBUX. ValuEngine downgraded shares of Starbucks from a “hold” rating to a “sell” rating in a research report on Thursday, May 3rd. Wedbush reaffirmed a “hold” rating and set a $58.00 price objective on shares of Starbucks in a research report on Friday, April 27th. Oppenheimer reaffirmed an “outperform” rating on shares of Starbucks in a research report on Friday, April 27th. BidaskClub downgraded shares of Starbucks from a “buy” rating to a “hold” rating in a research report on Saturday, May 5th. Finally, Vetr raised shares of Starbucks from a “hold” rating to a “buy” rating and set a $59.39 price objective on the stock in a research report on Monday, March 26th. One research analyst has rated the stock with a sell rating, fourteen have issued a hold rating and eighteen have assigned a buy rating to the company’s stock. Starbucks has an average rating of “Buy” and a consensus target price of $64.25.

Starbucks stock opened at $57.20 on Wednesday. The company has a market capitalization of $78.87 billion, a PE ratio of 27.77, a PEG ratio of 1.64 and a beta of 0.63. The company has a current ratio of 1.09, a quick ratio of 0.83 and a debt-to-equity ratio of 1.31. Starbucks has a fifty-two week low of $56.77 and a fifty-two week high of $57.32.

A number of hedge funds have recently made changes to their positions in SBUX. Magellan Asset Management Ltd increased its holdings in Starbucks by 18.1% in the 4th quarter. Magellan Asset Management Ltd now owns 30,912,781 shares of the coffee company’s stock valued at $1,775,321,000 after buying an additional 4,744,675 shares during the period. Bank of New York Mellon Corp increased its holdings in Starbucks by 4.1% in the 4th quarter. Bank of New York Mellon Corp now owns 30,728,508 shares of the coffee company’s stock valued at $1,764,739,000 after buying an additional 1,210,393 shares during the period. Capital International Investors grew its holdings in shares of Starbucks by 28.3% in the 3rd quarter. Capital International Investors now owns 21,269,515 shares of the coffee company’s stock worth $1,142,386,000 after purchasing an additional 4,696,452 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of Starbucks by 1.9% in the 4th quarter. Geode Capital Management LLC now owns 17,008,111 shares of the coffee company’s stock worth $974,952,000 after purchasing an additional 319,533 shares during the last quarter. Finally, Polen Capital Management LLC grew its holdings in shares of Starbucks by 3.0% in the 1st quarter. Polen Capital Management LLC now owns 12,229,797 shares of the coffee company’s stock worth $707,983,000 after purchasing an additional 356,525 shares during the last quarter. 74.78% of the stock is currently owned by institutional investors and hedge funds.

In related news, Director Craig Weatherup sold 59,838 shares of the business’s stock in a transaction on Tuesday, March 13th. The shares were sold at an average price of $60.10, for a total transaction of $3,596,263.80. Following the transaction, the director now owns 26,500 shares of the company’s stock, valued at $1,592,650. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 3.40% of the company’s stock.

The business also recently announced a quarterly dividend, which will be paid on Friday, May 25th. Investors of record on Thursday, May 10th will be given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 2.10%. The ex-dividend date of this dividend is Wednesday, May 9th. Starbucks’s dividend payout ratio (DPR) is currently 58.25%.

Starbucks announced that its board has authorized a stock buyback program on Thursday, April 26th that permits the company to repurchase 0 outstanding shares. This repurchase authorization permits the coffee company to buy shares of its stock through open market purchases. Shares repurchase programs are often an indication that the company’s board believes its shares are undervalued.

About Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates in four segments: Americas; China/Asia Pacific; Europe, Middle East, and Africa; and Channel Development. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink coffee and tea products, and food and snacks; and various food products, such as pastries, breakfast sandwiches, and lunch items.

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