Starbucks(US:SBUX) ZACKS·2025-06-04 22:51Core Viewpoint - Starbucks is facing a challenging earnings report with expected declines in earnings per share while revenue shows slight growth [2][3]. Group 1: Stock Performance - Starbucks closed at $88.13, up 1.77% from the previous session, outperforming the S&P 500's gain of 0.01% [1]. - The stock has increased by 4.61% over the past month, surpassing the Retail-Wholesale sector's gain of 4.04% but lagging behind the S&P 500's gain of 5.2% [1]. Group 2: Earnings Expectations - Analysts anticipate Starbucks will report earnings of $0.66 per share, reflecting a year-over-year decline of 29.03% [2]. - For the full year, earnings are expected to be $2.53 per share, marking a decrease of 23.56% from the previous year [3]. Group 3: Revenue Projections - The Zacks Consensus Estimate projects net sales of $9.29 billion for the upcoming earnings report, which is an increase of 1.94% compared to the same period last year [2]. - For the full year, revenue is expected to reach $36.89 billion, indicating a growth of 1.97% from the previous year [3]. Group 4: Analyst Estimates and Rankings - Recent changes in analyst estimates for Starbucks reflect shifting business dynamics, with positive revisions indicating confidence in the company's performance [4]. - The Zacks Rank for Starbucks is currently 4 (Sell), with a downward shift of 2.89% in the EPS estimate over the past month [6]. Group 5: Valuation Metrics - Starbucks has a Forward P/E ratio of 34.2, which is higher than the industry average of 23.58 [7]. - The PEG ratio for Starbucks stands at 4.35, compared to the industry average PEG ratio of 2.55 [7]. Group 6: Industry Context - The Retail-Restaurants industry, which includes Starbucks, holds a Zacks Industry Rank of 178, placing it in the bottom 28% of over 250 industries [8].