Starbucks Stock Stumbles After Company Reports Weak Preliminary Results, Suspends Guidance

Starbucks Corp (NASDAQ:SBUX) shares are cooling off in Tuesday’s after-hours session after the coffee giant reported weak preliminary results and suspended its guidance.

What Happened: Starbucks reported preliminary financial results for the fourth quarter after the market close on Tuesday showing that it expects consolidated net revenues to decline 3% and global comparable sales to fall 7%. Starbucks also said it anticipates earnings of 80 cents per share, down 25% year-over-year.

“Given the company’s CEO transition coupled with the current state of the business, guidance will be suspended for the full fiscal year 2025. This will allow ample opportunity to complete an assessment of the business and solidify key strategies, while stabilizing and positioning the business for long-term growth,” the company said.

Ahead of the pre-announcement, analysts were expecting Starbucks to report fourth-quarter earnings of $1.03 per share and revenue of $9.375 billion, according to estimates from Benzinga Pro.

Starbucks still ...