Starbucks Corporation (NASDAQ:SBUX), Releasing 7/27/17
The Estimize consensus calls for EPS of $0.56, one cent higher than the Wall Street consensus. Currently, the Estimize community is looking for revenues of $5.753B, slightly higher than the Street’s expectation for $5.745B.
With the stock price at $58.45, a dividend yield of 1.71% and a P/E ratio of 29.1, this appears to be a pretty steady stock worth taking a look at. Despite a recent lack of activity, a weaker dollar and new initiatives on Starbucks’ part could lead to an earnings surprise this quarter. Because Starbucks is very much an international company, with a huge market in China, the stronger dollar makes it tricky for investors to decide how to position themselves in the company.
In the first half of the fiscal year, SBUX did not reach its goal of 10% annual sales growth and 15% profit improvement, instead hitting just 6% in sales growth and 14% earnings expansions over the last six months. However, SBUX is expected to play catch-up in the latter half of the year to achieve its goal. SBUX did, however, improve its operating margin this year, up 4% since last year at 17.7%. Due to its international expansion plans — increasing its international locations by 50% within the next four years and expanding its lunch menu just as it did it’s breakfast menu — Starbucks presents itself as an interesting opportunity for long-term investors.