Starbucks (NASDAQ: SBUXThe company is expected to release its fiscal Q3-2021 results on Tuesday, July 27. We expect Starbucks will beat the consensus estimates of revenues and earnings. The company has reported better earnings than expected in the last four quarterly reports, and revenue beat consensus for two quarters. The start of the vaccination campaign and the loosening of lockdown restrictions led to a recovery of demand. We expect the same to drive the third-quarter FY2021 (FY ending in September) results. Our forecast shows that Starbucks’s value is approximately $124 per share. This is almost 4% above the current market price of $119.
Check out our interactive dashboard analysis of Starbucks pre-earnings: What to expect in Q3? for more details.
(1) Revenues in Q3 are expected to exceed consensus estimates
Trefis predicts Starbucks’ fiscal third-quarter 2021 (ended June 2021), revenues of around $7.54 Billion, which is 4% more than the $7.24 Billion consensus estimate. Overall, we anticipate Starbucks revenues to recover from the decline in FY 2020 and post revenues of about $28.5 billion for FY 2021 (ends Sep2021).
(2) EPS expected to surpass consensus estimates
Starbucks’ Q3 2021 earnings are expected to be $1.00 per Trefis Analysis, which is higher than the consensus estimate at $0.77. In 2020, the company’s net income margin declined due to increased operational expenses. In FY2021, the company will likely report an EPS of $3.17.
(3) Stock price estimate 3.9% higher than current market price
Our website is available here. Starbucks valuation EPS estimate is $3.17, and the P/E multiple is 39.1x in fiscal 2020, translating into $124. This price is about 4% above the $119 current market price.