Yahoo Finance The Starbucks Corporation (NASDAQ:SBUX) Third-Quarter Results Are Out And Analysts Have Published New Forecasts
Investors in Starbucks Corporation (NASDAQ:SBUX) had a good week, as its shares rose 6.3% to close at US$77.95 following the release of its quarterly results. It was a credible result overall, with revenues of US$9.1b and statutory earnings per share of US$0.93 both in line with analyst estimates, showing that Starbucks is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Starbucks
Taking into account the latest results, the consensus forecast from Starbucks' 31 analysts is for revenues of US$39.2b in 2025. This reflects a credible 7.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 13% to US$4.05. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$39.7b and earnings per share (EPS) of US$4.11 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$87.18, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Starbucks, with the most bullish analyst valuing it at US$112 and the most bearish at US$77.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Starbucks' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.0% growth on an annualised basis. This is compared to a historical growth rate of 9.2% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that Starbucks is also expected to grow slower than other industry participants.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Starbucks' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Starbucks going out to 2026, and you can see them free on our platform here..
You still need to take note of risks, for example - Starbucks has 2 warning signs (and 1 which can't be ignored) we think you should know about.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
