Coffeehouse chain Starbucks (NASDAQ:SBUX) gained in pre-market trading even as the company’s Fiscal Q1 results missed estimates. The company reported adjusted earnings of $0.90 per share in Q1, up by 20% year-over-year, but missed Street estimates of $0.93 per share.
Starbucks posted record revenues of $9.4 billion in the first quarter, an increase of 8% year-over-year, but fell short of consensus estimates of $9.6 billion. The company’s comparable store sales were up by 5% globally and in the U.S. In comparison, they increased by 7% on an international basis.
Looking forward to FY24, the company expects its revenues to grow in the range of 7% to 10% compared to the prior expectation of growth between 10% and 12%. SBUX has projected global and U.S. comparable sales growth to be up by 4% to 6% compared to its prior estimate of an increase between 5% and 7%.
Is SBUX Stock a Buy?
Analysts remain cautiously optimistic about SBUX stock with a Moderate Buy consensus rating based on seven Buys and 11 Holds. Over the past year, SBUX stock has slid by more than 10%, and the average SBUX price target of $107.59 implies an upside potential of 14.4% at current levels.
