Hightower Advisors’ Stephanie Link is holding Starbucks Corp SBUX shares into earnings after the bell, but she doesn’t have high hopes for the quarter.
“It’s not gonna be a pretty quarter because China was closed the whole quarter, so I think China is going to be an absolute mess like it was last quarter,” Link said Tuesday on CNBC’s “Fast Money Halftime Report.”
What To Know: Link doesn’t expect the quarter to be a complete disaster. She told CNBC that she believes the company will show resilience in the U.S. At least, she expects the company’s U.S. results to show improvement over the prior quarter, she said.
Despite her low expectations for Starbucks in the short term, Link is optimistic the company can turn things around.
Link has confidence in returning Starbucks CEO Howard Schultz. Starbucks scheduled an analyst day for September that will be led by Schultz. Link believes the event will be a catalyst for the stock, she said.
Starbucks also removed $20 billion from its buyback program, which Link views as a positive, as she sees the company using the cash to invest in itself.
“So I like the story for the long term, but tonight is not going to be a pretty print,” Link said.
Starbucks is scheduled to report second-quarter financial results after the bell. The company is expected to earn 75 cents per share on quarterly revenue of $8.1 billion, according to data from Benzinga Pro.
SBUX Price Action: Starbucks has a 52-week high of $117.80 and a 52-week low of $68.39.
The stock was down 0.97% at $84.09 at press time.
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