Starbucks Corporation (NASDAQ:SBUX) finds traction Wednesday amid optimism for its holiday gift card sales. Starbucks said it anticipates record purchases of Starbucks Cards on Dec. 24, citing the trend for customers to push their gift card purchases later and later. Last year, more than 2 million Starbucks Cards were purchased in the U.S. and Canada on Christmas Eve.
The National Retail Federation reports that eight in ten shoppers will purchase a gift card this holiday season. Since Starbucks Card launched 13 years ago, more than $20 billion has been loaded on Starbucks Cards in the U.S. and Canada alone, with $4 billion of that in the past year, according to company stats. Starbucks Cards are available in 29 countries worldwide with further expansion planned in 2015. Shares are up 1.4% near $80.24 Wednesday afternoon; the stock moves in a 52-week range $67.93 to $84.20.
Starbucks Corporation (SBUX) last released quarterly earnings on October 30th for the period ending September 30th 2014. The company reported actual earnings per share of $0.74 against Zack’s Research estimate of $0.74.
The average broker recommendation according to Zacks is 1.36 based on 18 recommendations. On a consensus basis, analysts have a short term target price of $89.54 and expect a long term growth rate of 18.00 %. Out of 265 companies within the Internet Commerce industry, the company sits at 73. Zacks gives a current quarter EPS estimate of 0.80 and a Hold rating of 3 which is based on short term performance over the next one to three months. Of the companies included in the Zack’s consensus rating, 14 rate the stock a Strong Buy, 1 rate it a buy and 3 see it as a Hold.
Starbucks Corporation (NASDAQ:SBUX) purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related equipments primarily through its company-operated retail stores. In addition to sales through its company-operated retail stores, Starbucks sells whole bean coffees through a specialty sales group and supermarkets. Additionally, Starbucks produces and sells bottled Frappuccino coffee drink and a line of premium ice creams through its joint venture partnerships and offers a line of innovative premium teas produced by its wholly owned subsidiary, Tazo Tea Company. The company’s objective is to establish Starbucks as the most recognized and respected brand in the world.