What to Expect When Starbucks (SBUX) Reports Q3 Results
NEW YORK (TheStreet) -- Shares of Starbucks (SBUX) - Get Report are down 0.40% to $56.69 on Tuesday afternoon ahead of the company's 2016 fiscal third quarter earnings, due out after Thursday's market close.
The company is expected to report a year-over-year increase in earnings per share and revenue.
Analysts surveyed by Thomson Reuters are anticipating earnings of 49 cents per share on revenue of $5.338 billion for the second quarter. A year ago the company reported earnings of 42 cents per share on revenue of $4.881 billion for the same quarter.
A week ago, the Seattle-based coffee company announced that it would increase wages of its U.S. workforce by between 5% and 15% in October, and that it's doubling its annual stock award for employees who have worked at the company for two years.
(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
data by