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Salomon Smith Barney raised estimates on coffee retailer Starbucks (SBUX
) after the company surprised the Street with only its second earnings per share outperformance in the last four years.
Starbucks shares rose 2-13/16 to 45 5/8.
Analyst Mark D. Kalinowski said Starbucks' EPS beat his estimates and the consensus forecast by $0.02. He said the positive surprise was due to menu prices increases and lower green coffee and dairy costs. Starbucks raised its earnings per share target range of $0.91 to $0.93, up from $0.90 to $0.92.
Kalinowski raised fiscal 2001 EPS estimates to $0.93, and $1.16 in fiscal 2002 due to a higher expected base of EPS coming off fiscal 2001. He added Starbucks shares should do very well over the next 12 to 18 months.