SBUX Updating Our Fiscal Q1E Forecasts Ahead of 1.24 Earnings Release
Ahead of Starbucks’ (SBUX; Neutral) planned fiscal Q1 2019 (calendar Q4 2018) earnings release planned for after the market close this Thursday (January 24th), we raise our fiscal Q1 same-store sales forecast for the Americas (and the U.S.) by one percentage point, to +4%, placing us above sell-side consensus (as measured by Consensus Metrix) of +3%. The raised forecast has the effect of increasing our Q1E EPS projection by one cent, to $0.66, also placing us one cent above sell-side consensus of $0.65. Our full-fiscal 2019E EPS forecast goes up by $0.01, to $2.66. Given this slightly higher anticipated base of earnings coming off of fiscal 2019, our fiscal 2020E EPS estimate rises by $0.01, to $3.01. We reiterate our Neutral rating on SBUX.