Starbucks(US:SBUX) ZACKS·2025-06-12 22:46Core Viewpoint - Starbucks is facing a decline in earnings per share (EPS) while revenue shows slight growth, indicating mixed performance ahead of its earnings disclosure [2][3]. Financial Performance - Starbucks closed at $94.32, down 1.12% from the previous trading session, while gaining 10.23% over the past month, outperforming the Retail-Wholesale sector's gain of 2.95% and the S&P 500's gain of 6.6% [1]. - The upcoming earnings disclosure is expected to show an EPS of $0.66, a decline of 29.03% year-over-year, with revenue anticipated at $9.29 billion, reflecting a 1.94% increase [2]. - For the entire year, earnings are forecasted at $2.53 per share, down 23.56%, with revenue projected at $36.89 billion, up 1.97% compared to the previous year [3]. Analyst Estimates and Ratings - Recent revisions in analyst estimates are crucial as they reflect near-term business trends, with positive revisions indicating a favorable business outlook [3]. - The Zacks Rank system, which evaluates estimate changes, currently rates Starbucks at 4 (Sell), with a recent 1.46% decrease in the consensus EPS estimate [4][5]. Valuation Metrics - Starbucks has a Forward P/E ratio of 37.67, significantly higher than the industry average of 23.8, indicating it is trading at a premium [6]. - The PEG ratio for Starbucks stands at 4.79, compared to the Retail-Restaurants industry's average of 2.53, suggesting a higher valuation relative to expected earnings growth [7]. Industry Context - The Retail-Restaurants industry is ranked 178 out of over 250 industries, placing it in the bottom 28%, which may impact investor sentiment [7][8].