Tuesday's Market Minute: Previewing Starbucks (SBUX) Earnings

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Starbucks SBUX reports 2Q earnings after the bell today. Zacks expects EPS of $0.60, which is slightly below last year’s, and revenue of $7.61B, which is stronger than a year ago. The stock has had a hard time this year, down over 35% in 2022, and the pain looks like it will continue.

Starbucks faces inflation pressures on both sides: Millennials are often told to cut back on buying coffee, and as prices go up and their spending power goes down, they may listen. Its business in China could take a hit as cities there close down because of COVID. At home, unionization efforts and labor pressures are making headlines.

While Starbucks shares jumped when founder Howard Schultz returned as CEO a month ago, it couldn’t snap the downtrend. These factors may not all have hit Starbucks yet, but investors should watch what they forecast for the full year, and any comments around consumer demand and costs. Still, despite the challenging environment and wave of headwinds, Starbucks could surprise to the upside.

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This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.