Starbucks (NASDAQ: SBUX), the leading global coffee company, is set to report its Q2 2024 results on April 30. Analysts expect the company to exceed revenue and earnings expectations in the second quarter. Starbucks has forecasted a 7% to 10% revenue growth for FY 2024, with global and U.S. comparable sales expected to increase by 4% to 6%. The company has maintained its EPS and global store growth guidance, keeping the consensus estimate for full-year EPS at $4.10. Starbucks has a history of consistently increasing its dividend since 2010, indicating potential for further growth and a higher valuation in the future.
According to forecasts, Starbucks has a valuation of $101 per share, which is 15% higher than the current market price. The company’s Q2 2024 revenues are estimated to be around $9.2 billion, slightly beating consensus estimates. Comparable sales in North America increased by 5% in Q1, with international sales also showing growth. Starbucks opened 549 net new stores in Q1, bringing its total store count to a record high of 38,587 globally. The company aims to reach 55,000 locations globally by 2030, with a focus on expanding in China. However, concerns arise about the brand’s ability to sustain growth given its widespread presence.
In terms of earnings per share, Starbucks is expected to report 82 cents in Q2 2024, slightly above the consensus estimate. In Q1 2024, the company reported earnings per share of $0.90, showing growth compared to the previous year. The stock price estimate based on the earnings per share forecast and a P/E multiple of 24.8x for fiscal 2024 is $101, higher than the current market price. Comparing Starbucks to its peers can provide valuable insights into the company’s performance and potential.
Starbucks’ strong financial performance and growth prospects are reflected in its future outlook. The company’s focus on expanding its global presence, particularly in key markets like China, is expected to drive continued success. With a solid track record of dividend growth and rising earnings, Starbucks is well-positioned for long-term sustainability and profitability. Investors can look forward to the company’s Q2 2024 results and future earnings reports to see how Starbucks continues to deliver value and drive growth in the competitive coffee market.
In conclusion, Starbucks remains a dominant player in the global coffee industry, with a strong financial position and growth prospects. The company’s consistent performance and strategic initiatives are expected to support its future success. As Starbucks continues to expand its footprint and enhance its offerings, investors can expect sustained growth and potential for a higher valuation. The upcoming Q2 2024 results will provide further insights into Starbucks’ performance and outlook for the rest of the fiscal year.
