The whisper number is $.34 and they may hit it, but beware of guidance. SBUX will guide down because of: 1)Huge discounting and coupons of Starbucks and Seattle Best coffee at all retailers that carry them 2) Maxwell House distributor is raising distribution costs 3)Huge increase in coffee prices, sugar prices and milk cost and more projected increases coming 4)Increase in corporate tax rate 5)Loss of wi-fi fees 5)Wage increases in Europe and some states 6)Costa Coffee took market share from SBUX in Britian and Europe with huge advertising blitz (Costa sales up 27%) 7)SBUX sales have slowed somewhat in China (We honestly can't figure out why, but it is true). Margins also will be very soft next quarter.
well, that didn't happen. What will be interesting is if they bump the divi another 2 cents to $.15. that would roil the pot and probably get shorts trying to cover. It might (note the word MIGHT) gap up. I say that only because it is up in aftermarket trading
Even if they guide down (which I doubt) the PPS is heading higher with the rest of the market. Expect to see 32+ on Friday. They already warned last quarter about 2011 margins and took steps to combat them. Look at where the PPS is now since the last quarter and see the open interest in the Nov 30 call. It's easy money to go long here, the big money knows it thus the run up today as your seeing in pre market.
You've made some excellent points to ponder. They usually hit the number, at least their numbers, which is never lofty. The do have that dividend payout so much of the growth is done. They learned their lesson. I warned of the overbuilding years ago. Many of the ideas they have tried I called them on to fail and they did. The stock was punished from $40 to $7 and now is nuckle dragging trying to hit just $30. There is many a slip betwixt that cup and the lip. Yes, guidance is key and could drive big blocks to liquidate and if they have a profit, why not? Let's see how their major market in CA does as to their economy. I wish Moonbeam lot of luck at age 72. He's got more ego than brains!