Starbucks Q1 Earnings Preview: Analysts Expect Revenue and Earnings Decline
Key Points:
* Starbucks (SBUX) to release fiscal Q1 results after market close on Tuesday.
* Consensus estimates project a decline in revenue and earnings compared to last year.
* Analysts express concerns about product innovation and marketing strategy.
Analysts' Expectations:
* Visible Alpha tracks 16 analysts covering Starbucks, with 10 issuing "buy" or equivalent ratings.
* Consensus price target of $106 implies potential 7% upside from current price.
* Revenue projection: $9.33 billion (1% decline year-over-year)
* Earnings per share (EPS): $0.68 (24% decrease year-over-year)
Same-Store Sales Outlook:
* Street estimates anticipate a 4.8% year-over-year decline in same-store sales.
* Jefferies analysts predict a 6% drop in U.S. same-store sales due to reduced foot traffic and challenges with product innovation.
* Analysts question the impact of CEO Brian Niccol's decision to prioritize brand advertising over discounts and promotions.
Other Points of Interest:
* Investors will monitor for potential updates on Starbucks' 2025 forecast, which was not provided last quarter.
* Starbucks shares have gained approximately 7% in the past year.