Starbucks Earnings Preview: Analysts Expect Modest Improvement
Starbucks (SBUX) is scheduled to release its fiscal second-quarter earnings report after the closing bell on Tuesday. According to a survey of Wall Street analysts conducted by LSEG, the consensus estimates are for earnings per share (EPS) of 79 cents and revenue of $9.13 billion.
These estimates reflect a modest improvement compared to the company’s performance in the previous quarter, which fell short of expectations. Analysts attribute the lackluster results to declining foot traffic at Starbucks cafes, driven in part by discounting strategies employed by competitors in China and boycotts by some consumers in the United States.
Despite these challenges, Starbucks remains confident in its ability to drive sales growth. The company has been investing heavily in advertising and promotional campaigns, including the launch of new seasonal drinks such as the Spicy Lemonade Refreshers line.
Looking ahead, Starbucks has provided guidance for fiscal 2024, anticipating revenue growth of 7% to 10% and global same-store sales growth in the range of 4% to 6%. The company also projects earnings per share growth of 15% to 20%.
Despite the company’s optimism, its share price has declined by 22% over the past year, bringing its market capitalization down to approximately $100 billion. This development highlights the challenges Starbucks faces amidst an uncertain economic environment and increased competition in the coffee industry.
This story is developing, and we will provide updates as they become available.
