FY2025 EPS Estimates for Starbucks Reduced by Zacks Research

Key Points

• Zacks Research has reduced its FY2025 EPS estimate for Starbucks from $2.49 to $2.21, while the current consensus estimate remains at $2.99.
• Starbucks recently reported quarterly earnings of $0.50 EPS, falling short of analyst expectations of $0.64 EPS, despite achieving a revenue of $9.46 billion.
• The company announced a quarterly dividend of $0.61 per share, resulting in an annualized yield of 2.7%, with a payout ratio exceeding 105%.

Starbucks Corporation (NASDAQ:SBUX - Free Report) - Research analysts at Zacks Research decreased their FY2025 EPS estimates for shares of Starbucks in a research note issued on Tuesday, August 19th. Zacks Research analyst Team now anticipates that the coffee company will post earnings per share of $2.21 for the year, down from their prior estimate of $2.49. The consensus estimate for Starbucks' current full-year earnings is $2.99 per share. Zacks Research also issued estimates for Starbucks' Q4 2025 earnings at $0.61 EPS, Q1 2026 earnings at $0.69 EPS, Q2 2026 earnings at $0.50 EPS, Q3 2026 earnings at $0.76 EPS, FY2026 earnings at $2.72 EPS, Q1 2027 earnings at $0.74 EPS, Q2 2027 earnings at $0.66 EPS and Q3 2027 earnings at $0.85 EPS.

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

A number of other research firms also recently issued reports on SBUX. The Goldman Sachs Group restated a "neutral" rating and issued a $95.00 price target (up from $85.00) on shares of Starbucks in a research report on Thursday, June 12th. Wells Fargo & Company raised their price target on shares of Starbucks from $100.00 to $105.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 30th. Stifel Nicolaus boosted their target price on shares of Starbucks from $92.00 to $105.00 and gave the company a "buy" rating in a research note on Friday, July 11th. CICC Research started coverage on shares of Starbucks in a research note on Monday, June 30th. They set an "outperform" rating and a $100.00 target price for the company. Finally, Loop Capital set a $165.00 target price on shares of Starbucks in a research note on Tuesday, August 12th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $104.40.

Starbucks Stock Performance

Starbucks stock opened at $89.51 on Thursday. The firm's 50-day moving average is $92.70 and its 200-day moving average is $93.83. Starbucks has a 1 year low of $75.50 and a 1 year high of $117.46. The company has a market cap of $101.75 billion, a P/E ratio of 38.58, a PEG ratio of 5.34 and a beta of 1.02.

Institutional Trading of Starbucks

A number of institutional investors have recently made changes to their positions in SBUX. Brighton Jones LLC lifted its stake in shares of Starbucks by 86.5% in the 4th quarter. Brighton Jones LLC now owns 176,722 shares of the coffee company's stock worth $16,126,000 after acquiring an additional 81,952 shares during the period. T. Rowe Price Investment Management Inc. lifted its stake in shares of Starbucks by 1,548.0% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 1,513,437 shares of the coffee company's stock worth $138,102,000 after acquiring an additional 1,421,600 shares during the period. RiverPark Advisors LLC lifted its stake in shares of Starbucks by 59.6% in the 4th quarter. RiverPark Advisors LLC now owns 12,587 shares of the coffee company's stock worth $1,149,000 after acquiring an additional 4,701 shares during the period. Burling Wealth Partners LLC acquired a new stake in shares of Starbucks in the 4th quarter worth approximately $751,000. Finally, Banco Bilbao Vizcaya Argentaria S.A. lifted its stake in shares of Starbucks by 25.6% in the 4th quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 121,085 shares of the coffee company's stock worth $11,001,000 after acquiring an additional 24,718 shares during the period. 72.29% of the stock is owned by institutional investors and hedge funds.

Starbucks Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Shareholders of record on Friday, August 15th will be paid a dividend of $0.61 per share. This represents a $2.44 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend is Friday, August 15th. Starbucks's payout ratio is presently 105.17%.

About Starbucks

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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