Starbucks Co. (NASDAQ:SBUX) Forecasted to Post Q3 2024 Earnings of $1.11 Per Share

Starbucks Co. (NASDAQ:SBUX) – Analysts at William Blair decreased their Q3 2024 earnings estimates for Starbucks in a report issued on Tuesday, April 16th. William Blair analyst S. Zackfia now forecasts that the coffee company will post earnings per share of $1.11 for the quarter, down from their prior estimate of $1.15. The consensus estimate for Starbucks’ current full-year earnings is $4.03 per share.

Starbucks (NASDAQ:SBUX) last posted its quarterly earnings data on Wednesday, January 31st. The coffee company reported $0.90 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.92 by ($0.02). Starbucks had a negative return on equity of 50.76% and a net margin of 11.70%. The company had revenue of $9.43 billion for the quarter, compared to analysts’ expectations of $9.60 billion. During the same quarter last year, the business posted $0.75 EPS. The business’s quarterly revenue was up 8.2% on a year-over-year basis.

SBUX has been the subject of several other research reports. BTIG Research reduced their target price on shares of Starbucks from $125.00 to $115.00 and set a “buy” rating for the company in a research note on Wednesday, January 31st. Gordon Haskett downgraded shares of Starbucks from a “buy” rating to a “hold” rating and set a $100.00 target price for the company. in a research note on Tuesday, January 16th. Morgan Stanley reduced their target price on shares of Starbucks from $120.00 to $115.00 and set an “overweight” rating for the company in a research note on Friday, April 12th. Robert W. Baird cut 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. Finally, Wedbush restated a “neutral” rating and issued a $95.00 price objective on shares of Starbucks in a research report on Wednesday, January 31st. Fourteen investment analysts have rated the stock with a hold rating and ten have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $106.68.

Starbucks Stock Performance

NASDAQ SBUX opened at $87.61 on Friday. Starbucks has a 52-week low of $84.29 and a 52-week high of $115.48. The company has a 50-day simple moving average of $90.94 and a 200 day simple moving average of $94.39. The company has a market capitalization of $99.19 billion, a PE ratio of 23.43, a price-to-earnings-growth ratio of 1.39 and a beta of 0.97.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Quilter Plc bought a new position in Starbucks in the 1st quarter worth $208,530,000. Freedom Wealth Alliance LLC bought a new position in shares of Starbucks in the 4th quarter worth about $26,000. Scarborough Advisors LLC bought a new position in shares of Starbucks in the 4th quarter worth about $26,000. Vima LLC bought a new position in shares of Starbucks in the 4th quarter worth about $26,000. Finally, DSM Capital Partners LLC bought a new position in shares of Starbucks in the 4th quarter worth about $27,000. 72.29% of the stock is currently owned by institutional investors.

Insider Activity at Starbucks

In related news, CEO Michael Aaron Conway sold 3,250 shares of the company’s stock in a transaction on Monday, April 15th. The shares were sold at an average price of $85.39, for a total transaction of $277,517.50. Following the completion of the sale, the chief executive officer now directly owns 81,199 shares in the company, valued at approximately $6,933,582.61. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders sold 7,250 shares of company stock worth $653,183 in the last three months. 1.98% of the stock is owned by insiders.

Starbucks Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 31st. Investors of record on Friday, May 17th will be issued a dividend of $0.57 per share. The ex-dividend date of this dividend is Thursday, May 16th. This represents a $2.28 dividend on an annualized basis and a yield of 2.60%. Starbucks’s dividend payout ratio is currently 60.96%.

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.