Starbucks (SBUX) Stock Up on Mixed Q3 Results

Starbucks (SBUX) stock is advancing in mid-morning trading today after the company posted mixed third quarter results after markets closed on Thursday.
By Annie Palmer ,

NEW YORK (TheStreet) -- Shares of Starbucks (SBUX) - Get Report are rising by 0.54% to $57.91 in mid-morning trading Friday, as the Seattle-based coffee chain reported mixed third quarter results after Thursday's closing bell.

Starbucks posted adjusted earnings of 49 cents per share on revenue of $5.2 billion - a 7% increase year-over-year. Analysts projected earnings of 49 cents per share on revenue of $5.3 billion for the company.

Additionally, Barclays lowered its price target on Starbucks to $60 from $62 and reiterated its "equal weight" rating on the stock. Still, the firm said it remains bullish on Starbucks in the long term.

"Broadly speaking, we continue to believe SBUX is a leading global growth story, with an industry-leading US retail coffee platform, significant int'l growth opportunities led by China, and plans for CPG to one day rival the retail platform," Barclays continued in an analyst note.

For 2016, the firm predicts adjusted earnings per share of $1.88 to $1.89 and 19% to 20% growth year-over-year. 

(Starbucks is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial here.)

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate STARBUCKS CORP as a Buy with a ratings score of B. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in net income. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

You can view the full analysis from the report here: SBUX

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