William Blair Decreases Earnings Estimates for Starbucks

Key Points

• William Blair has decreased its FY2025 earnings estimates for Starbucks from $2.19 to $2.15 per share, while the consensus estimate stands at $2.99 per share.
• Starbucks reported earnings of $0.50 per share for the last quarter, falling short of analyst expectations by $0.14, despite revenues increasing by 3.8% year-over-year.
• Following the earnings report, multiple analysts have revised their ratings and price targets for Starbucks, with ratings ranging from "Strong Buy" to "Sell," and a consensus price target of $104.40.

Starbucks Corporation (NASDAQ:SBUX - Free Report) - Equities research analysts at William Blair cut their FY2025 earnings estimates for shares of Starbucks in a research report issued to clients and investors on Thursday, September 25th. William Blair analyst S. Zackfia now anticipates that the coffee company will post earnings per share of $2.15 for the year, down from their prior forecast of $2.19. 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 $0.56 EPS and FY2027 earnings at $2.78 EPS.

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

Other analysts have also recently issued reports about the company. Baird R W raised Starbucks from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 12th. UBS Group upped their target price on Starbucks from $95.00 to $100.00 and gave the company a "neutral" rating in a research note on Wednesday, July 30th. 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 price target on the stock. Guggenheim increased their price target on Starbucks from $79.00 to $90.00 and gave the stock a "neutral" rating in a research report on Thursday, July 31st. Finally, BMO Capital Markets reissued an "outperform" rating and issued a $115.00 price objective (up previously from $100.00) on shares of Starbucks in a research note on Wednesday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, eight have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $104.40.

Starbucks Stock Down 0.5%

SBUX opened at $83.39 on Monday. The company has a market capitalization of $94.79 billion, a PE ratio of 35.94, a price-to-earnings-growth ratio of 5.01 and a beta of 1.00. Starbucks has a 52 week low of $75.50 and a 52 week high of $117.46. The firm has a 50-day simple moving average of $88.48 and a two-hundred day simple moving average of $88.92.

Institutional Investors Weigh In On Starbucks

Large investors have recently modified their holdings of the business. Alliance Wealth Advisors LLC raised its position in shares of Starbucks by 2.1% during the 2nd quarter. Alliance Wealth Advisors LLC now owns 5,170 shares of the coffee company's stock worth $474,000 after purchasing an additional 108 shares during the period. Cooper Haims Advisors LLC grew its stake in Starbucks by 3.0% during the 2nd quarter. Cooper Haims Advisors LLC now owns 3,749 shares of the coffee company's stock worth $344,000 after buying an additional 110 shares during the last quarter. Brown Lisle Cummings Inc. grew its stake in Starbucks by 1.4% during the 2nd quarter. Brown Lisle Cummings Inc. now owns 8,293 shares of the coffee company's stock worth $760,000 after buying an additional 117 shares during the last quarter. Diligent Investors LLC increased its position in Starbucks by 1.9% in the second quarter. Diligent Investors LLC now owns 6,132 shares of the coffee company's stock worth $562,000 after buying an additional 117 shares during the period. Finally, Benin Management CORP lifted its stake in Starbucks by 0.7% in the first quarter. Benin Management CORP now owns 16,575 shares of the coffee company's stock valued at $1,626,000 after buying an additional 120 shares during the last quarter. Hedge funds and other institutional investors own 72.29% of the company's stock.

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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