SBUX We’ll Hoist a Venti S’mores Frappuccino to This Improved Outlook
By Mark Kalinowski
Published on April 25, 2019 at 12:00 AM
After Thursday’s market close, Starbucks (SBUX; Neutral) reported adjusted fiscal Q2 EPS of $0.60, surpassing our $0.57 forecast and the sell-side consensus (according to Consensus Metrix) of $0.56. The company also raises its target range for full-fiscal 2019 EPS to $2.75-$2.79 (from $2.68-$2.73 previously, an increase of $0.07 at the low end of the range and an increase of $0.06 at the high end of the range). Management attributes the improved outlook as follows: (1) two-thirds to an improved tax-rate outlook, and (2) one-third to a better outlook for Americas’ operating margins.