Starbucks (NASDAQ:SBUX) Posts Quarterly Earnings Results, Meets Expectations

Starbucks (NASDAQ:SBUX) announced its earnings results on Tuesday. The coffee company reported $0.93 EPS for the quarter, meeting the consensus estimate of $0.93, Briefing.com reports. The company had revenue of $9.11 billion for the quarter, compared to analyst estimates of $9.25 billion. Starbucks had a negative return on equity of 48.78% and a net margin of 11.16%. The firm’s revenue for the quarter was down .6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.00 EPS.

Starbucks Price Performance

Shares of Starbucks stock traded down $2.84 during trading hours on Thursday, reaching $75.11. The company had a trading volume of 17,291,496 shares, compared to its average volume of 10,838,698. Starbucks has a one year low of $71.55 and a one year high of $107.66. The business has a fifty day simple moving average of $77.74 and a 200 day simple moving average of $84.84. The firm has a market cap of $85.08 billion, a PE ratio of 20.53, a price-to-earnings-growth ratio of 1.72 and a beta of 0.94.

Starbucks Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 30th. Stockholders of record on Friday, August 16th will be issued a $0.57 dividend. This represents a $2.28 dividend on an annualized basis and a dividend yield of 3.04%. The ex-dividend date of this dividend is Friday, August 16th. Starbucks’s payout ratio is currently 62.81%.

Insider Transactions at Starbucks

In related news, CEO Michael Aaron Conway sold 3,250 shares of Starbucks stock in a transaction on Friday, June 14th. The stock was sold at an average price of $80.00, for a total transaction of $260,000.00. Following the completion of the sale, the chief executive officer now owns 78,304 shares of the company’s stock, valued at $6,264,320. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In other Starbucks news, CEO Michael Aaron Conway sold 3,250 shares of Starbucks stock in a transaction dated Friday, June 14th. The stock was sold at an average price of $80.00, for a total transaction of $260,000.00. Following the completion of the sale, the chief executive officer now owns 78,304 shares of the company’s stock, valued at $6,264,320. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Rachel Ruggeri sold 3,750 shares of Starbucks stock in a transaction dated Wednesday, May 22nd. The stock was sold at an average price of $80.00, for a total value of $300,000.00. Following the sale, the chief financial officer now directly owns 65,431 shares of the company’s stock, valued at approximately $5,234,480. The disclosure for this sale can be found here. Insiders sold 7,250 shares of company stock valued at $579,375 over the last three months. Company insiders own 1.98% of the company’s stock.

Wall Street Analysts Forecast Growth

SBUX has been the topic of several recent research reports. William Blair lowered Starbucks from an “outperform” rating to a “market perform” rating in a report on Wednesday, May 1st. Morgan Stanley reiterated an “overweight” rating and issued a $98.00 price target on shares of Starbucks in a report on Wednesday. BMO Capital Markets cut their price target on Starbucks from $120.00 to $100.00 and set an “outperform” rating on the stock in a report on Monday, July 22nd. Barclays cut their price target on Starbucks from $95.00 to $93.00 and set an “overweight” rating on the stock in a report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft dropped their target price on Starbucks from $89.00 to $85.00 and set a “hold” rating on the stock in a report on Tuesday, July 16th. Seventeen equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. According to MarketBeat, Starbucks presently has an average rating of “Hold” and a consensus target price of $90.88.

About Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.