Saputo Inc. (TSE:SAP) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

It's been a good week for Saputo Inc. (TSE:SAP) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.3% to CA$35.36. Results were roughly in line with estimates, with revenues of CA$4.7b and statutory earnings per share of CA$0.45. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, Saputo's eight analysts currently expect revenues in 2026 to be CA$19.1b, approximately in line with the last 12 months. Earnings are expected to improve, with Saputo forecast to report a statutory profit of CA$1.87 per share. In the lead-up to this report, the analysts had been modelling revenues of CA$19.3b and earnings per share (EPS) of CA$1.78 in 2026. So the consensus seems to have become somewhat more optimistic on Saputo's earnings potential following these results.

See our latest analysis for Saputo

The consensus price target was unchanged at CA$35.41, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Saputo at CA$42.00 per share, while the most bearish prices it at CA$26.50. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Saputo shareholders.

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. We would highlight that revenue is expected to reverse, with a forecast 0.4% annualised decline to the end of 2026. That is a notable change from historical growth of 6.5% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.3% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Saputo is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Saputo following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CA$35.41, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Saputo. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Saputo going out to 2028, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Saputo .

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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.