Wall Street projects an upward pressure on SBUX stock, after the upcoming quarterly earnings report release in January 2024. Although this widely recognized consensus outlook offers valuable insight into the company's earnings environment, the deviation of actual results from these estimates is a critical determinant of its short-term stock performance.
A bullish sign in the stock price could be anticipated in the earnings report, which is slated for January 30. Conversely, missing projections may result in a selling pressure in the value of the company's stock.
Starbucks Quarterly Earnings Forecast
It is anticipated that Starbucks will disclose quarterly earnings amounting to $0.93 per share in its forthcoming report, which would signify a significant increase of 24% year-over-year. Anticipated revenue is at $9.6 billion, representing a growth of 10.1% when compared to the corresponding quarter of the prior year. Notably, over the past 30 days, the consensus EPS estimate for the quarter has been revised downward by 1.75 percent, suggesting that covering analysts have collectively reevaluated the figure.
Analysts frequently assess the historical performance of a company in comparison to consensus estimates when attempting to forecast its future earnings. As a result, it is essential to examine the history of surprises to comprehend their prospective influence on forthcoming figures.
SBUX Earnings History
The market had anticipated that Starbucks would report earnings of $0.97 per share for the most recent quarter. However, the company outperformed expectations by generating earnings of $1.06 per share, which represented a positive surprise of +9.28%. In three out of the last four quarters, Starbucks has exceeded consensus earnings per share (EPS) estimates.
It is critical to acknowledge that the performance of a stock may not be exclusively determined by whether earnings beat or fail. Unforeseen catalysts can propel stock gains despite an earnings miss, whereas other disappointing factors can cause stocks to depreciate despite an earnings beat.
SBUX Stock Technical Analysis
In the daily chart of SBUX stock price, the ongoing selling pressure is visible from the 20-day EMA carry, with no sign of buyers' presence in the market. Moreover, the visible range high volume level since 3 October 2023 is at 93.43 level, which is just above the current price.
The Relative Strength Index (RSI) showed a bearish rebound below the 50.00 line in technical indicators. Moreover, the MACD Histogram is neutral, while the signal line formed a rebound from the oversold zone.
Based on the daily outlook, an upbeat earnings report with a daily candle above the 94.20 level could be a valid long opportunity in this stock, targeting the 104.00 level. However, a downside continuation with a consolidation below the 89.00 level could lower the price towards the 70.46 support level.