Shares of Starbucks Corp. (NASDAQ: SBUX) were down nearly 2% in morning hours on Wednesday after the company’s forecast for fiscal year 2020 earnings growth turned out weaker-than-expected.
The company now expects EPS for fiscal year 2020 to be below its ongoing growth model of 10%. The outlook was released in a slide presentation by CFO Pat Grismer at the Goldman Sachs’ Global Retailing Conference.
Starbucks expects fiscal year 2020 adjusted EPS growth to be negatively impacted by one-time tax benefits in fiscal year 2019. The company also pulled forward its FY20 expected share repurchases into FY19.
Starbucks expects earnings for fiscal year 2019 to range from $2.80-2.82 per share. The company also stated that its long-term double-digit EPS growth model is intact.
Analysts have forecast EPS of $3.12 for fiscal year 2020, which represents a 10.6% increase over the estimated fiscal year 2019 EPS of $2.82.
Starbucks had topped revenue and earnings estimates for the third quarter of 2019 triggering a stock rally at the time. Revenues rose 8% to $6.8 billion while adjusted EPS jumped 26% to $0.78.
Starbucks’ shares have gained over 49% so far this year and 24% in the past three months.
Most Popular
United Parcel Service (UPS) seems on track to regain lost strength
Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic
IPO Alert: What to look for when Boundless Bio goes public
Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.
Nike (NKE) bets on innovation and partnerships to return to high growth
Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company