Starbucks' Earnings Preview: Analyst Ratings Ahead of Release
Starbucks Corporation Earnings Forecast
Starbucks Corporation (NASDAQ: SBUX) is set to announce its earnings results for the third quarter soon. Investors and analysts are keenly awaiting this release, as expectations are high for what the results will reveal about the company's performance.
Analysts' Earnings Estimates
For this upcoming earnings report, analysts project that Starbucks will report earnings of approximately 65 cents per share. This figure represents a decrease from last year's 93 cents per share. However, when taking revenue into account, the forecast appears more optimistic with anticipated earnings of around $9.31 billion. This projection slightly exceeds last year's reported revenue of $9.11 billion, suggesting potential growth despite expected earnings per share decline.
Starbucks' Recent Performance
The company has encountered challenges in meeting analysts' revenue expectations in the past. In fact, Starbucks experienced revenue misses in seven of its last ten quarters, raising concerns among investors about its ability to sustain growth. After a slight dip in share prices, which fell 0.8% to close at $93.67, the scrutiny surrounding the upcoming financial report has intensified.
Analyst Ratings and Price Targets
Several analysts have recently revised their ratings and price targets for Starbucks stock:
- Barclays analyst Jeffrey Bernstein has maintained an Overweight rating but has lowered the price target from $108 to $106.
- Citigroup analyst Jon Tower has kept a Neutral rating while raising the price target from $95 to $100.
- Stifel analyst Chris O'Cull remains positive with a Buy rating and has increased the price target from $92 to $105.
- Another positive outlook comes from Bernstein's Richard Clarke, who has an Outperform rating with the price target increased from $90 to $100.
- Evercore ISI's David Palmer has also expressed optimism, maintaining an Outperform rating and raising the price target from $95 to $105.
Market Reactions
Investors should take these analyst updates into account as they reflect the market's confidence in Starbucks' potential to recover from past shortcomings. The fluctuation in stock price reflects broader market sentiments about the company's strategic positioning and overall market trends. Analysts are increasingly optimistic, which could indicate a shift in how Starbucks’ strategies are perceived moving forward.
Analyst Consensus and Investor Takeaways
As the earnings call approaches, it's essential for potential investors to keep an eye on these consensus ratings. This insight is valuable, considering the recent performance nuances and competitive landscape. With trading strategies evolving, understanding current price targets and analysts' expectations can assist in making informed investment decisions surrounding SBUX stock.
Frequently Asked Questions
What are the expected earnings for Starbucks for the third quarter?
Analysts expect Starbucks to report earnings of 65 cents per share for the upcoming third-quarter report.
How does this quarter's earnings compare to last year's?
Last year, Starbucks reported earnings of 93 cents per share for the same quarter, indicating a decrease in expectations this year.
What have analysts said about Starbucks' revenue expectations?
Analysts are optimistic about revenue estimates, projecting around $9.31 billion compared to $9.11 billion last year.
How has Starbucks stock performed recently?
Starbucks shares dropped 0.8% to $93.67 following concerns about their ability to meet revenue forecasts.
What are analysts' recent ratings for Starbucks?
Recent revisions include an Overweight rating from Barclays and a Buy rating from Stifel, with various price target adjustments.
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