The Zhitong Finance app learned that on Wednesday morning, Beijing time, Starbucks (SBUX.US) announced its financial report for the third fiscal quarter after the US stock market closed. Although there were losses, the company's executives' optimism about the outlook stimulated the company's stock price to rise in the US stock market on Wednesday, closing 3.72% to 77.42 US dollars.
Financial reports show that the company's revenue for the third fiscal quarter was 4.2 billion US dollars, market expectations were 4,059 billion US dollars, the same period last year; net loss was 678 million US dollars, market expected loss was 723 million US dollars, profit for the same period last year was 1.37 billion US dollars; GAAP loss per share was 0.58 US dollars, non-GAAP loss per share was 0.46 US dollars; same-store sales fell 40%, market estimates fell 42.8%; China's same-store sales fell 19%, estimated to be down 21.7%.
Starbucks said that a key sales indicator performed positively in July, indicating that the coffee chain giant's recovery momentum is increasing. Starbucks said the Chinese market was a key factor driving its recovery. In the third fiscal quarter, same-store sales in China fell 19%. It is expected that by the end of the year, its business in China will recover sharply.
After Starbucks announced its earnings report, most Wall Street investment banks still maintained confidence in the company.
Wedbush: Raised Starbucks's target price from $75 to $81 to maintain “hold” rating
The bank pointed out that since the company's same-store sales and earnings per share are higher than expected, and the performance so far in July has improved compared to expectations, although the current valuation of the company may reflect investors' concerns about medium- to long-term performance, the company's outlook in the short term is still quite optimistic.
Barclays Bank: Maintains Starbucks “Overstakes” Rating and Raises Target Price from $88 to $94
The bank said that although the US economic recession may follow due to stay-at-home measures, and its domestic sales level may be difficult to recover, Starbucks has so far operated in more than 80 countries for this reason, and it is believed that the company will fully recover in fiscal year 2021.
Stephens:Raise Starbucks's target price from $72 to $78 to maintain “hold” rating
Starbucks expects that by the first quarter of fiscal year 2021, the performance of companies in China will recover, and the performance of US companies will also recover in the second quarter. In response, the bank said that since the company increased global same-store sales, it adjusted its earnings per share expectations for fiscal year 2020 and fiscal year 2021, but there is still uncertainty about the company's expectations, so it remains cautious about the company.
Jefferies: Maintaining the Starbucks “buy” rating, with a target price of $94
The agency said that Starbucks lost less than expected in the third fiscal quarter, and that the company's performance in China rebounded slightly, so it is believed the company can get through the difficult times smoothly.
MKM Partners: Raising Starbucks's target price from $74 to $79 and maintaining the “hold” rating
The bank pointed out that the profit and sales volume of Starbucks in the US and China for the third fiscal quarter exceeded previous expectations, and that the recovery of sales revenue in the region “is progressing”. Furthermore, the company's continuous strategic investment in the technology sector and store optimization plans are still progressing, so it has a positive view of its performance.
