Starbucks (SBUX,$86.96) tops earnings expectations
Starbucks reported its fiscal fourth quarter earnings that topped analysts’ expectations.
The coffee chain’s adjusted earnings for the quarter came in at 51 cents a share, well above the 31 cents expected by analysts polled by Refinitiv.
Revenue fell -8% year-over-year to $6.2 billion, surpassing analysts’ forecast of $6.06 billion.
Global same-store sales fell -9%.
The company also indicated that while the number of transactions has reduced due to the pandemic, customers are spending on pricier items like cold beverages and plant-based options.
According to Starbucks, sales in the U.S. and China are recouping from the COVID-19 pandemic impact more quickly than expected.
In the US, same-store sales fell -9%. Active membership in Starbucks’ U.S. loyalty program climbed +10% to 19.3 million people and accounted for 47% of transactions.
China same-store sales dropped by just -3%.
During the quarter, Starbucks opened 480 new cafes on net. It expects to open 1,100 net new stores and $1.9 billion in capital expenditures in the next fiscal year.
Looking ahead, the company forecasts adjusted earnings of 50 cents to 55 cents per share for the fiscal first quarter.
SBUX's RSI Indicator climbs out of oversold territory
The RSI Indicator for SBUX moved out of oversold territory on December 24, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 26 similar instances when the indicator left oversold territory. In of the 26 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 11 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SBUX advanced for three days, in of 292 cases, the price rose further within the following month. The odds of a continued upward trend are .
SBUX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 09, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on SBUX as a result. In of 96 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SBUX turned negative on December 05, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at .
SBUX moved below its 50-day moving average on December 13, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for SBUX crossed bearishly below the 50-day moving average on December 17, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SBUX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for SBUX entered a downward trend on December 24, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (10.916). P/E Ratio (27.163) is within average values for comparable stocks, (57.789). Projected Growth (PEG Ratio) (1.819) is also within normal values, averaging (1.774). Dividend Yield (0.026) settles around the average of (0.039) among similar stocks. P/S Ratio (2.826) is also within normal values, averaging (8.558).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. SBUX’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SBUX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock better than average.
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General Information
a producer of coffee and tea
Industry Restaurants