Starbucks FY2025 EPS Estimate Decreased by William Blair

Key Points

• William Blair has decreased its FY2025 earnings estimate for Starbucks to $2.19 per share from a prior forecast of $2.39.
• Starbucks reported a Q3 earnings per share (EPS) of $0.50, which was $0.14 below analyst expectations of $0.64.
• The company also announced a quarterly dividend of $0.61 per share, reflecting an annualized dividend yield of 2.63%.

Starbucks Corporation (NASDAQ:SBUX - Free Report) - Investment analysts at William Blair reduced their FY2025 earnings estimates for shares of Starbucks in a note issued to investors on Wednesday, July 30th. William Blair analyst S. Zackfia now expects that the coffee company will post earnings per share of $2.19 for the year, down from their previous forecast of $2.39. 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 $0.59 EPS and FY2026 earnings at $2.36 EPS.

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

Other equities analysts have also recently issued reports about the stock. Guggenheim lifted their price objective on shares of Starbucks from $79.00 to $90.00 and gave the stock a "neutral" rating in a research note on Thursday. Citigroup dropped their price target on shares of Starbucks from $100.00 to $99.00 and set a "neutral" rating for the company in a research note on Wednesday. UBS Group boosted their price target on shares of Starbucks from $95.00 to $100.00 and gave the company a "neutral" rating in a report on Wednesday. TD Cowen boosted their price target on shares of Starbucks from $90.00 to $95.00 and gave the company a "hold" rating in a report on Wednesday. Finally, Wells Fargo & Company boosted their price objective on shares of Starbucks from $100.00 to $105.00 and gave the stock an "overweight" rating in a research note on Wednesday. Four analysts have rated the stock with a sell rating, eleven have issued a hold rating and fifteen have assigned a buy rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $101.27.

Starbucks Trading Down 2.6%

SBUX traded down $2.30 during trading on Thursday, hitting $86.86. 16,215,272 shares of the company traded hands, compared to its average volume of 10,280,721. The company has a market cap of $98.73 billion, a PE ratio of 37.44, a P/E/G ratio of 5.08 and a beta of 1.02. The stock's 50-day simple moving average is $91.73 and its two-hundred day simple moving average is $94.58. Starbucks has a 1 year low of $72.72 and a 1 year high of $117.46.

Institutional Trading of Starbucks

A number of hedge funds have recently added to or reduced their stakes in SBUX. Brighton Jones LLC raised its position in Starbucks by 86.5% during the fourth 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. Arrowstreet Capital Limited Partnership acquired a new position in Starbucks in the 4th quarter valued at about $602,000. Kesler Norman & Wride LLC boosted its stake in Starbucks by 7.7% during the fourth quarter. Kesler Norman & Wride LLC now owns 10,133 shares of the coffee company's stock worth $925,000 after buying an additional 724 shares during the period. Cinctive Capital Management LP boosted its stake in Starbucks by 45.5% during the fourth quarter. Cinctive Capital Management LP now owns 79,616 shares of the coffee company's stock worth $7,265,000 after buying an additional 24,888 shares during the period. Finally, OneAscent Financial Services LLC purchased a new position in Starbucks during the fourth quarter worth about $294,000. 72.29% of the stock is owned by hedge funds and other institutional investors.

Starbucks Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 29th. Investors of record on Friday, August 15th will be issued a dividend of $0.61 per share. The ex-dividend date of this dividend is Friday, August 15th. This represents a $2.44 dividend on an annualized basis and a yield of 2.8%. 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.