Shares of Starbucks Corp (NASDAQ: SBUX) were trading lower on Wednesday after the company reported its first-quarter results short of expectations.
The results came amid an exciting earnings season. Here are some key analyst takeaways from the release.
Wedbush On Starbucks
Analyst Nick Setyan maintained a Neutral rating and price target of $75.
Starbucks reported its fiscal first-quarter earnings below expectations on lower-than-expected same-store sales growth and operating margin, Setyan said in a note. “FQ2 guidance implies a LSD U.S. comp and negative China comp, but management expects a full recovery in 2H,” he added.
The company’s full-year guidance is “questionable” as its first-quarter results and second-quarter guidance disappointed, the analyst further stated.
Stephens On Starbucks
Analyst Joshua Long reiterated an Equal-Weight rating and price target of $110.
Starbucks reported China same-store sales of +10% for the first quarter, which came in significantly below Street expectations of +17.4%, with performance being impacted by a “more cautious consumer environment,” Long said.
“Over the longer term, we view ...