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Key Takeaways
- Starbucks plans to release its fiscal second quarter results after the close of the market on Tuesday.
- The report is the third since Brian Niccol, the new CEO, assumed his role in September.
- Analysts expect quarterly revenues to increase year-over-year, for the first time since more than a decade.
Starbucks (SBUX), which was taken over by Brian Niccol in September, will report its second-quarter fiscal results after the closing bell on Tuesday.
Niccol’s “Back to Starbucks,” turnaround campaign, has seen a flurry of changes. From the aesthetic (baristas have returned to writing names on coffee cups using Sharpies) to practical (the condiments bar has been brought back and Niccol has placed an emphasis on getting orders fulfilled within four minutes). Starbucks announced in February that it would be laying off 1,100 corporate workers to create “smaller and more agile teams.”
Visible Alpha reports that analysts expect Starbucks to report a revenue increase for the first time since more than a month, with a forecast of $8.81 Billion, up 3% compared to a year ago. Analysts still expect a decline of nearly 30% in adjusted earnings per shares to 48 cents.
Shares of Starbucks wavered between gains and losses in recent trading Tuesday, and have lost close to 9% since the start of the year, slightly underperforming the S&P 500.
Investors will be closely watching how Starbucks responds to the current tariff situation. In recent weeks, several companies have withdrawn their outlooks amid economic uncertainty and suggested that they could increase prices in response to the import taxes.
This article has been updated to reflect revised earnings estimates since it was originally published.
