Starbucks (NASDAQ:SBUX) Releases Earnings Results, Misses Expectations By $0.04 EPS

Starbucks (NASDAQ:SBUXGet Free Report) announced its quarterly earnings results on Tuesday. The coffee company reported $0.90 earnings per share for the quarter, missing analysts’ consensus estimates of $0.94 by ($0.04), Briefing.com reports. The firm had revenue of $9.43 billion during the quarter, compared to analyst estimates of $9.60 billion. Starbucks had a net margin of 11.47% and a negative return on equity of 48.79%. The business’s revenue was up 8.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.75 earnings per share. Starbucks updated its FY24 guidance to $4.07-4.25 EPS.

Starbucks Price Performance

Shares of Starbucks stock opened at $94.08 on Wednesday. The business has a fifty day simple moving average of $95.81 and a two-hundred day simple moving average of $96.96. Starbucks has a 1 year low of $89.21 and a 1 year high of $115.48. The company has a market capitalization of $106.52 billion, a price-to-earnings ratio of 26.28, a P/E/G ratio of 1.44 and a beta of 0.98.

Starbucks Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 23rd. Shareholders of record on Friday, February 9th will be issued a dividend of $0.57 per share. This represents a $2.28 annualized dividend and a yield of 2.42%. The ex-dividend date is Thursday, February 8th. Starbucks’s dividend payout ratio is 63.69%.

Insider Buying and Selling at Starbucks

In other Starbucks news, insider Michael Aaron Conway sold 6,500 shares of the firm’s stock in a transaction on Tuesday, November 14th. The stock was sold at an average price of $104.77, for a total transaction of $681,005.00. Following the completion of the sale, the insider now owns 72,822 shares of the company’s stock, valued at approximately $7,629,560.94. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In other news, insider Michael Aaron Conway sold 6,500 shares of Starbucks stock in a transaction on Tuesday, November 14th. The stock was sold at an average price of $104.77, for a total transaction of $681,005.00. Following the completion of the sale, the insider now owns 72,822 shares of the company’s stock, valued at $7,629,560.94. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Rachel Ruggeri sold 504 shares of Starbucks stock in a transaction on Wednesday, November 15th. The stock was sold at an average price of $105.66, for a total value of $53,252.64. Following the sale, the chief financial officer now directly owns 75,027 shares of the company’s stock, valued at approximately $7,927,352.82. The disclosure for this sale can be found here. Insiders sold 7,754 shares of company stock valued at $807,565 in the last quarter. 1.98% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. State Street Corp raised its stake in Starbucks by 0.3% in the first quarter. State Street Corp now owns 44,120,185 shares of the coffee company’s stock valued at $4,594,235,000 after purchasing an additional 135,644 shares in the last quarter. Morgan Stanley raised its stake in Starbucks by 46.3% in the fourth quarter. Morgan Stanley now owns 26,718,368 shares of the coffee company’s stock valued at $2,650,462,000 after purchasing an additional 8,451,599 shares in the last quarter. Norges Bank bought a new position in Starbucks in the fourth quarter valued at about $1,222,931,000. Charles Schwab Investment Management Inc. grew its position in Starbucks by 18.5% in the first quarter. Charles Schwab Investment Management Inc. now owns 9,811,297 shares of the coffee company’s stock valued at $892,535,000 after acquiring an additional 1,531,708 shares during the last quarter. Finally, Moneta Group Investment Advisors LLC grew its position in Starbucks by 115,334.1% in the fourth quarter. Moneta Group Investment Advisors LLC now owns 8,493,639 shares of the coffee company’s stock valued at $842,569,000 after acquiring an additional 8,486,281 shares during the last quarter. Institutional investors and hedge funds own 70.13% of the company’s stock.

Analyst Ratings Changes

SBUX has been the topic of several research analyst reports. Citigroup dropped their target price on shares of Starbucks from $103.00 to $102.00 and set a “neutral” rating on the stock in a report on Thursday, January 18th. Barclays dropped their target price on shares of Starbucks from $123.00 to $116.00 and set an “overweight” rating on the stock in a report on Monday, October 23rd. Morgan Stanley upgraded shares of Starbucks from an “equal weight” rating to an “overweight” rating and raised their target price for the stock from $112.00 to $120.00 in a report on Tuesday, January 16th. UBS Group dropped their target price on shares of Starbucks from $110.00 to $100.00 and set a “neutral” rating on the stock in a report on Thursday, October 12th. Finally, Jefferies Financial Group dropped their target price on shares of Starbucks from $107.00 to $100.00 in a report on Tuesday, October 3rd. Eleven research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. According to data from MarketBeat, Starbucks currently has an average rating of “Hold” and a consensus price target of $112.82.

View Our Latest Stock Analysis on Starbucks

About Starbucks

(Get Free Report)

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.

Further Reading

Earnings History for Starbucks (NASDAQ:SBUX)

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