What is Zacks Research's Estimate for Starbucks Q1 Earnings?

Starbucks Co. (NASDAQ:SBUX - Free Report) - Equities research analysts at Zacks Research reduced their Q1 2025 earnings per share (EPS) estimates for Starbucks in a report issued on Wednesday, November 20th. Zacks Research analyst H. Ray now forecasts that the coffee company will earn $0.70 per share for the quarter, down from their previous forecast of $0.86. The consensus estimate for Starbucks' current full-year earnings is $3.15 per share. Zacks Research also issued estimates for Starbucks' Q2 2025 earnings at $0.61 EPS, Q3 2025 earnings at $0.88 EPS, Q4 2025 earnings at $0.91 EPS, Q1 2026 earnings at $0.80 EPS, Q2 2026 earnings at $0.70 EPS, Q3 2026 earnings at $0.94 EPS, FY2026 earnings at $3.53 EPS and FY2027 earnings at $4.42 EPS.

Starbucks (NASDAQ:SBUX - Get Free Report) last announced its quarterly earnings results on Wednesday, October 30th. The coffee company reported $0.80 EPS for the quarter, hitting the consensus estimate of $0.80. The company had revenue of $9.07 billion during the quarter, compared to analyst estimates of $9.60 billion. Starbucks had a negative return on equity of 46.39% and a net margin of 10.40%. The firm's revenue was down 3.2% on a year-over-year basis. During the same period in the prior year, the firm posted $1.06 earnings per share.

Other equities research analysts have also issued research reports about the company. BTIG Research raised their price objective on Starbucks from $100.00 to $115.00 and gave the company a "buy" rating in a research note on Thursday, October 17th. Baird R W raised Starbucks from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 13th. TD Cowen reissued a "buy" rating and issued a $110.00 price target on shares of Starbucks in a report on Monday, November 11th. Stifel Nicolaus raised their price target on Starbucks from $105.00 to $110.00 and gave the stock a "buy" rating in a report on Thursday, October 31st. Finally, Jefferies Financial Group downgraded Starbucks from a "hold" rating to an "underperform" rating and cut their price target for the stock from $80.00 to $76.00 in a report on Tuesday, September 24th. Three research analysts have rated the stock with a sell rating, nine have issued a hold rating, seventeen have issued a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $102.81.

Starbucks Stock Performance

Shares of SBUX stock traded up $2.44 during trading hours on Friday, reaching $102.50. The company had a trading volume of 6,529,169 shares, compared to its average volume of 11,065,590. Starbucks has a twelve month low of $71.55 and a twelve month high of $103.60. The stock's fifty day simple moving average is $97.03 and its 200 day simple moving average is $86.79. The company has a market capitalization of $116.15 billion, a P/E ratio of 30.20, a price-to-earnings-growth ratio of 2.85 and a beta of 0.97.

Hedge Funds Weigh In On Starbucks

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Wellington Management Group LLP grew its stake in shares of Starbucks by 100.6% in the 3rd quarter. Wellington Management Group LLP now owns 15,149,937 shares of the coffee company's stock valued at $1,476,967,000 after purchasing an additional 7,598,146 shares during the period. FMR LLC grew its stake in shares of Starbucks by 55.0% in the 3rd quarter. FMR LLC now owns 19,779,859 shares of the coffee company's stock valued at $1,928,339,000 after purchasing an additional 7,015,375 shares during the period. Marshall Wace LLP grew its stake in shares of Starbucks by 1,466.3% in the 2nd quarter. Marshall Wace LLP now owns 3,350,932 shares of the coffee company's stock valued at $260,870,000 after purchasing an additional 3,136,992 shares during the period. Diamond Hill Capital Management Inc. bought a new stake in shares of Starbucks in the 2nd quarter valued at approximately $243,910,000. Finally, Capital World Investors bought a new stake in shares of Starbucks in the 1st quarter valued at approximately $257,721,000. 72.29% of the stock is currently owned by institutional investors.

Insider Transactions at Starbucks

In related news, Director Jorgen Vig Knudstorp purchased 380 shares of Starbucks stock in a transaction on Friday, September 6th. The stock was bought at an average price of $91.50 per share, with a total value of $34,770.00. Following the completion of the transaction, the director now directly owns 36,242 shares of the company's stock, valued at approximately $3,316,143. This represents a 1.06 % increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Rachel Ruggeri sold 1,452 shares of the business's stock in a transaction dated Friday, November 15th. The stock was sold at an average price of $99.07, for a total value of $143,849.64. Following the completion of the sale, the chief financial officer now directly owns 65,648 shares of the company's stock, valued at $6,503,747.36. This represents a 2.16 % decrease in their position. The disclosure for this sale can be found here. 1.98% of the stock is currently owned by insiders.

Starbucks Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 29th. Stockholders of record on Friday, November 15th will be given a $0.61 dividend. This represents a $2.44 annualized dividend and a dividend yield of 2.38%. The ex-dividend date is Friday, November 15th. This is a boost from Starbucks's previous quarterly dividend of $0.57. Starbucks's dividend payout ratio (DPR) is 73.72%.

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.