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.