Market Overview

I think you’ll love what you hear,
what you’ll see and the opportunities
that will be set before you.
- Jon Najarian

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

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

Starbucks Corporation (NASDAQ: 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.

Latest Ratings for SBUX

May 2019MaintainsBuyBuy
Apr 2019ReiteratesBuy
Apr 2019MaintainsEqual-WeightEqual-Weight

View More Analyst Ratings for SBUX
View the Latest Analyst Ratings

Posted-In: coffee David Palmer Estimize Karen HolthouseAnalyst Color Previews Analyst Ratings Trading Ideas


Related Articles (SBUX)

View Comments and Join the Discussion!

Latest Ratings

GRUBInitiates Coverage On
HOTHInitiates Coverage On
NDRAInitiates Coverage On
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Quicken Loans: Home Prices Not Expected To Remain Static

Technician Breaks Down Johnson & Johnson