What can investors expect from SBUX's Q2 2025 earnings?
3/28/2025 04:31pm
**Starbucks' Q2 2025 Earnings Outlook**
1. **Estimate EPS and Revenue**: Starbucks is expected to report earnings per share (EPS) of $0.51, reflecting an 8.1% year-over-year increase. The estimated revenue for the quarter is $8.83 billion, indicating a 5.3% year-over-year growth.
2. **Comparative Analysis**: Q2 2025 earnings are anticipated to show slight improvements over the previous year's performance. In Q2 2024, Starbucks' EPS was $0.80, and revenue was $9.16 billion. The current estimates suggest a slight increase in EPS and a marginal decrease in revenue compared to the previous year's second quarter.
3. **Market Sentiment and Forecasts**:
- Wedbush, a financial services firm, has lowered its Q2 2024 earnings estimate to $0.80 per share, which is slightly below the consensus estimate of $0.82.
- Analysts at Wedbush have a "Neutral" rating on Starbucks with a price target of $92.00, indicating a cautious outlook.
- Other analysts have set a consensus price target of $106.55, reflecting a potential upside from the current market price.
4. **Potential Challenges and Opportunities**:
- Starbucks has faced challenges, including high prices deterring customer visits and brand perception issues due to its international political position.
- However, there are signs of potential rebound in demand, especially in China, where comparable store sales increased by 10%.
- The company's loyalty program has seen a 13% increase in active members, reaching 34.3 million in the U.S..
5. **Dividend Growth and Long-Term Outlook**: Starbucks has consistently raised its dividend since 2010 and is expected to continue this trend, providing momentum for the stock's long-term valuation.
In conclusion, Starbucks' Q2 2025 earnings are expected to show modest growth, with EPS and revenue reflecting incremental improvements over the previous year. While market sentiment is cautious, with some analysts lowering estimates, the potential rebound in demand, especially in China, and the company's consistent dividend growth offer a positive long-term outlook for investors.