Tom Reese/Paul Rubillo, Dividend.com
Starbucks (SBUX) shares are flat so far today, after reporting profits of $64.3 million, or 9 cents per share, down 69 percent from $208.1 million, or 28 cents per share a year earlier.
The company's revenue dropped to $2.62 billion from $2.77 billion, which was below consensus expectations for revenue of $2.70 billion. In addition to the 600 stores the company announced it would be closing recently, it will now shut another 300 stores by the end of the fiscal year, resulting in 7000 more job cuts.
The Bottom Line
Shares of Starbucks have technical support in the mid $7 range, which would take it back to September of 2001 levels. If that doesn’t hold, then the high $5 range can not be ruled out. If the shares can stabilize at these levels, any upturn may run into overhead resistance in the $13-14 price area. We do not currently rate this non-dividend paying stock, but do monitor the name closely.
Starbucks (SBUX) does not currently pay a dividend.
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