BUZZ-PREVIEW: Starbucks shares dip ahead of results, due after the bell

Reuters
04-30
BUZZ-PREVIEW: Starbucks shares dip ahead of results, due after the bell

** Shares of Starbucks SBUX.O are down 0.5% with the co due to report lower yr-over-yr qtrly EPS in its results due after the closing bell

** Analysts on an avg expect Q2 rev of $8.82 bln vs $8.56 bln in the yr-ago qtr, and EPS of 49/shr vs 68c a yr ago, according to LSEG

** Investors will want to hear any comments from Starbucks about the Trump administration's tariffs, with shares of many restaurant cos including Starbucks falling in the wake of Trump's announcement of sweeping tariffs April 2

** They may also want to hear about the company's China business. Reuters reported, citing sources, on February 25 that KKR & Co KKR.N, Fountainvest Partners and PAG were among buyout firms interested in acquiring a stake in Starbucks' China business as Starbucks tries to revive sales in its second-largest market

** On February 24, Starbucks said it would eliminate 1,100 corporate roles as CEO Brian Niccol pushes ahead with his turnaround efforts at the coffee chain

** This week, both UBS and Guggenheim cut their target prices on Starbucks

** The median 12-mo PT on the stock is $100.00; the stock was last at $83.44

** Analyst recommendations on the stock include 18 "strong buy" or "buy" ratings, 17 "hold" ratings and four "sell" or "strong sell" ratings

** SBUX is down about 8% for the YTD, compared with a roughly 5% decline in the S&P 500 .SPX

(Reporting by Caroline Valetkevitch)

((caroline.valetkevitch@thomsonreuters.com))

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