Starbucks ($SBUX) is scheduled to release earnings after Thursday's close. Earlier this year, the upscale coffee giant's stock hit a high of $64.87/share and is currently trading at $58/share. The stock is prone to big moves after reporting earnings and can easily gap up if they report strong numbers. Conversely, if they miss, the stock can easily gap down like it did last quarter. To help you prepare, here is what the Street is expecting:
Earnings Preview:
Starbucks is expected to report earnings of $0.55/share on $5.74 billion in revenue. Meanwhile, the so-called Whisper number is $0.56. The Whisper number is the Street's unofficial view on earnings.
Company Profile & Various Businesses:
Here is a very brief company profile courtesy of Thomson Reuters Eikon:
Starbucks Corporation (Starbucks), incorporated on November 4, 1985, is a roaster, marketer and retailer of coffee. As of October 2, 2016, the Company operated in 75 countries. The Company operates through four segments: Americas, which is inclusive of the United States, Canada, and Latin America; China/Asia Pacific (CAP); Europe, Middle East, and Africa (EMEA), and Channel Development. The Company purchases and roasts coffees that it sells, along with handcrafted coffee, tea and other beverages and a range of fresh food items, including snack offerings, through Company-operated stores. The Company also sells a range of coffee and tea products and licenses its trademarks through other channels, such as licensed stores, grocery and foodservice accounts. In addition to its Starbucks Coffee brand, the Company sells goods and services under various brands, including Teavana, Tazo, Seattle's Best Coffee, Evolution Fresh, La Boulange and Ethos.
Competition:
Starbucks competes with: JNJ Snack Foods Corp, The Second Cup, Mondelez Int'l, Nestle, McDonalds Corp, Kahala Brands, & Dunkin Brands Group, just to name a few.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news.
