FY2025 EPS Estimates for Starbucks Cut by William Blair

Key Points

• William Blair has cut their FY2025 EPS estimate for Starbucks from $2.15 to $2.12, while the consensus estimate remains at $2.99 per share.
• Starbucks recently announced an increase in its quarterly dividend to $0.62 per share, signaling a positive change despite a high dividend payout ratio of 105.17%.
• Institutional investors currently hold 72.29% of Starbucks' stock, with several major purchases made during recent quarters.

Starbucks Corporation (NASDAQ:SBUX - Free Report) - Research analysts at William Blair dropped their FY2025 EPS estimates for shares of Starbucks in a report issued on Monday, October 20th. William Blair analyst S. Zackfia now expects that the coffee company will post earnings per share of $2.12 for the year, down from their prior estimate of $2.15. The consensus estimate for Starbucks' current full-year earnings is $2.99 per share. William Blair also issued estimates for Starbucks' Q4 2025 earnings at $0.53 EPS, Q1 2026 earnings at $0.49 EPS, Q4 2026 earnings at $0.64 EPS, FY2026 earnings at $2.03 EPS and FY2027 earnings at $2.59 EPS.

Several other analysts also recently weighed in on SBUX. TD Cowen cut their price objective on shares of Starbucks from $88.00 to $84.00 and set a "hold" rating on the stock in a research report on Friday, October 10th. Evercore ISI reaffirmed an "outperform" rating and issued a $105.00 price target (up from $95.00) on shares of Starbucks in a research report on Tuesday, June 24th. Jefferies Financial Group downgraded Starbucks from a "hold" rating to an "underperform" rating and set a $76.00 price objective for the company. in a research report on Thursday, July 17th. CICC Research initiated coverage on shares of Starbucks in a research note on Monday, June 30th. They issued an "outperform" rating and a $100.00 target price for the company. Finally, Robert W. Baird raised Starbucks from a "neutral" rating to an "outperform" rating and lifted their target price for the company from $100.00 to $115.00 in a research report on Tuesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, ten have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Starbucks currently has an average rating of "Moderate Buy" and an average price target of $102.60.

Starbucks Price Performance

Shares of NASDAQ SBUX opened at $84.53 on Tuesday. Starbucks has a 1-year low of $75.50 and a 1-year high of $117.46. The company has a market capitalization of $96.09 billion, a price-to-earnings ratio of 36.44, a PEG ratio of 4.22 and a beta of 1.01. The business has a 50-day moving average of $85.57 and a 200-day moving average of $87.41.

Starbucks (NASDAQ:SBUX - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The coffee company reported $0.50 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.64 by ($0.14). Starbucks had a negative return on equity of 36.23% and a net margin of 7.18%.The firm had revenue of $9.46 billion for the quarter, compared to analyst estimates of $9.29 billion. During the same period in the prior year, the business earned $0.93 earnings per share. Starbucks's revenue for the quarter was up 3.8% on a year-over-year basis.

Hedge Funds Weigh In On Starbucks

Several institutional investors and hedge funds have recently made changes to their positions in the business. Nuveen LLC purchased a new position in shares of Starbucks during the first quarter valued at approximately $1,379,619,000. Norges Bank purchased a new stake in shares of Starbucks in the second quarter worth $1,246,316,000. Jennison Associates LLC purchased a new stake in shares of Starbucks during the first quarter valued at approximately $817,759,000. Polen Capital Management LLC purchased a new position in shares of Starbucks in the first quarter worth $503,539,000. Finally, Corient Private Wealth LLC grew its stake in shares of Starbucks by 146.6% in the second quarter. Corient Private Wealth LLC now owns 6,049,192 shares of the coffee company's stock worth $553,201,000 after acquiring an additional 3,596,014 shares during the period. Institutional investors own 72.29% of the company's stock.

Starbucks Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 28th. Investors of record on Friday, November 14th will be paid a dividend of $0.62 per share. This is a positive change from Starbucks's previous quarterly dividend of $0.61. This represents a $2.48 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend is Friday, November 14th. Starbucks's dividend payout ratio is 105.17%.

Starbucks Company Profile

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items.

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