Here's What 2 Analysts Are Saying About Starbucks Ahead Of Its Q1 Report

Starbucks Corporation SBUX will report its second quarter results on Thursday after market close.

The Estimize Consensus earnings per share estimate (based on 61 estimates) is $0.34 on revenue of $4.506 billion. This compares to the Wall Street Consensus earnings per share estimate of $0.33 on revenue of $4.509 billion.

Goldman Sachs: Starbucks A Top Pick

Karen Holthouse of Goldman Sachs commented in a note that Starbucks is a top pick heading into earnings season and the company should report a "clean quarter" despite weather disruptions and a 5 percent America's comp shows "sufficient strength" in the underlying business.

Related Link: Clash Of The Coffee Titans: Starbucks Versus Dunkin

Holthouse added that more importantly, Starbucks's commentary on its mobile ordering initiatives should drive "excitement" and a traffic acceleration in the back of the year and heading into 2016.

The analyst also noted that coffee spot prices (in the low $1.30 range) is well off peak levels and would be expected to hit in 2016. Investors will likely focus on the potential for this to flow-through versus be offset by incremental spending elsewhere.

Shares are Buy rated with a $53.50 price target.

RBC: Checks Point To A Positive Quarter

David Palmer of RBC Capital Markets stated in a note that his proprietary consumer panel analysis of activity through March was most positive.

According to Palmer's analysis, Starbucks' second quarter same-store sales growth is expected to be in the 4 percent to 5 percent range. The analyst added that a 5 percent growth is in-line with investor expectations, it is possible sales growth will accelerate during the remainder of the year driven by technology investments that will "bolster" near-term throughput, frequency and check.

Palmer also noted that his channel data suggested Starbucks has continued to gain share of packaged coffee and single serve (K-Cups). In the most recent 12-week period, Starbucks' K-Cups market share of packaged coffee and K-Cups rose to 10.9 percent and 15.9 percent from 10.4 percent and 13.7 percent last year, respectively.

Palmer concluded that Starbucks should report a revenue acceleration that coincides with cost of goods sold (COGS) efficiencies and favorable commodity costs.

Shares are Outperform rated with a $50 price target.