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Starbucks’ stock is currently trading at 71.98-higher by 0.58% as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 0.13%. The stock has pared all of its earlier losses and turned positive after the opening bell.
The coffee company said on the previous day that its fiscal Q2 earnings will fall by 47% as compared to a year ago due to the China-linked virus impact. Starbucks now sees adjusted EPS of $0.28 to $0.32 for the second quarter. The EPS was down from $0.60 in the second quarter of 2019. The coffee-company said that these estimates reflect the impact of lost sales for the period as well as incremental expenses for partner wages.
The markets were expecting EPS of $0.39 for the second quarter. Starbucks is also abandoning its annual guidance. The coffee company suspended its share buyback program. Starbucks will however continue to pay its dividend. The coffee company is scheduled to report its second-quarter earnings on 28th April. Stocks of Starbucks have fallen about 18% Year-to-date.
On the technical front, the RSI is currently at 53.65% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the middle line of the Bollinger bands and is heading upwards.
Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit target.
TRADE SUGGESTION- LIMIT BUY AT 71.90 TAKE PROFIT AT 73.60 STOP LOSS AT 71.10