Kevin Johnson, President and CEO of Starbucks, speaks during a press conference in Shanghai on August 2, 2018.
AFP | Getty Images
Starbucks is expected to announce its second quarter fiscal year results on Tuesday after the bell.
Wall Street analysts surveyed by Refinitiv expect the following:
- Earnings per share: 53 cents expected
- Revenue: $ 6.82 billion expected
Analysts are forecasting a more than 13% increase in sales for the coffee giant compared to the same period last year when the company first saw the impact of the coronavirus pandemic on its business. The cafes in China closed for several months and sales in the same store halved in the same quarter of the previous year. Starbucks’ US operations stalled until March 2020 when the company temporarily closed locations.
A year later, the company sees signs of recovery. Starbucks sales in the same store in China were positive last quarter. In the US, the company is forecasting revenue growth of 5% to 10% in the same business for the second fiscal quarter. Sales in the same business decreased by 3% in the same period of the previous year. Starbucks expects earnings of 36 to 41 cents per share, or 45 cents to 50 cents on an adjusted basis, for the quarter.
The coffee chain is also expected to release a comprehensive update of its business outlook as well as the second quarter results. At the end of January, Starbucks was forecasting earnings per share between $ 2.42 and $ 2.62 and global sales growth in the same business of 18% to 23%.
Starbucks shares are up 8% in 2021, bringing them to a market value of $ 136 billion.