Starbucks Co. to Post Q3 2024 Earnings of $0.94 Per Share, Wedbush Forecasts (NASDAQ:SBUX)

Starbucks Co. (NASDAQ:SBUX) – Analysts at Wedbush cut their Q3 2024 earnings per share (EPS) estimates for shares of Starbucks in a research note issued on Wednesday, May 1st. Wedbush analyst N. Setyan now expects that the coffee company will post earnings of $0.94 per share for the quarter, down from their prior forecast of $1.15. Wedbush has a “Neutral” rating and a $92.00 price objective on the stock. The consensus estimate for Starbucks’ current full-year earnings is $3.89 per share. Wedbush also issued estimates for Starbucks’ Q4 2024 earnings at $1.08 EPS, Q1 2025 earnings at $1.02 EPS, Q2 2025 earnings at $0.76 EPS and Q4 2025 earnings at $1.19 EPS.

Starbucks (NASDAQ:SBUX) last released its quarterly earnings results on Tuesday, April 30th. The coffee company reported $0.68 EPS for the quarter, missing the consensus estimate of $0.79 by ($0.11). Starbucks had a net margin of 11.38% and a negative return on equity of 49.91%. The business had revenue of $8.56 billion during the quarter, compared to analysts’ expectations of $9.12 billion. During the same quarter last year, the company earned $0.74 EPS. The firm’s revenue for the quarter was down 1.8% compared to the same quarter last year.

Other equities research analysts also recently issued research reports about the stock. Robert W. Baird reduced their price objective on shares of Starbucks from $106.00 to $100.00 and set a “neutral” rating for the company in a research report on Monday, March 18th. Barclays reduced their price objective on shares of Starbucks from $116.00 to $112.00 and set an “overweight” rating for the company in a research note on Wednesday, January 31st. Stifel Nicolaus dropped their target price on shares of Starbucks from $90.00 to $80.00 and set a “hold” rating for the company in a report on Wednesday. Stephens reissued an “equal weight” rating and set a $110.00 price target on shares of Starbucks in a research note on Wednesday, January 31st. Finally, UBS Group dropped their price objective on Starbucks from $95.00 to $85.00 and set a “neutral” rating for the company in a research note on Wednesday. Seventeen investment analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. According to data from MarketBeat, Starbucks has an average rating of “Hold” and a consensus price target of $97.09.

Starbucks Stock Performance

SBUX stock opened at $73.11 on Friday. The stock has a market capitalization of $82.81 billion, a PE ratio of 20.14, a price-to-earnings-growth ratio of 1.28 and a beta of 0.97. The company has a fifty day moving average of $89.34 and a 200-day moving average of $93.98. Starbucks has a one year low of $72.67 and a one year high of $108.12.

Institutional Investors Weigh In On Starbucks

Large investors have recently modified their holdings of the stock. Orca Investment Management LLC lifted its position in shares of Starbucks by 6.6% during the fourth quarter. Orca Investment Management LLC now owns 7,494 shares of the coffee company’s stock worth $719,000 after purchasing an additional 466 shares in the last quarter. Cerity Partners LLC increased its stake in Starbucks by 481.9% during the 4th quarter. Cerity Partners LLC now owns 1,547,411 shares of the coffee company’s stock worth $148,567,000 after buying an additional 1,281,471 shares during the period. Metis Global Partners LLC lifted its holdings in Starbucks by 15.4% in the 3rd quarter. Metis Global Partners LLC now owns 56,939 shares of the coffee company’s stock worth $5,197,000 after buying an additional 7,619 shares in the last quarter. FFT Wealth Management LLC purchased a new position in Starbucks in the 4th quarter valued at about $209,000. Finally, Tyche Wealth Partners LLC acquired a new stake in shares of Starbucks during the fourth quarter valued at about $794,000. Institutional investors and hedge funds own 72.29% of the company’s stock.

Insider Transactions at Starbucks

In other Starbucks news, insider Michael Aaron Conway sold 3,250 shares of the business’s stock in a transaction that occurred on Thursday, February 15th. The shares were sold at an average price of $94.03, for a total transaction of $305,597.50. Following the completion of the sale, the insider now directly owns 84,153 shares in the company, valued at $7,912,906.59. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Insiders have sold a total of 7,250 shares of company stock worth $651,738 in the last three months. 1.98% of the stock is currently owned by company insiders.

Starbucks Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, May 31st. Shareholders of record on Friday, May 17th will be given a dividend of $0.57 per share. This represents a $2.28 dividend on an annualized basis and a yield of 3.12%. The ex-dividend date is Thursday, May 16th. Starbucks’s dividend payout ratio (DPR) is presently 62.81%.

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.