Kura Sushi,Inc. (TSE:2695) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

Shareholders might have noticed that Kura Sushi,Inc. (TSE:2695) filed its third-quarter result this time last week. The early response was not positive, with shares down 3.9% to JP¥3,490 in the past week. Kura SushiInc reported in line with analyst predictions, delivering revenues of JP¥58b and statutory earnings per share of JP¥21.72, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kura SushiInc after the latest results.

View our latest analysis for Kura SushiInc

Taking into account the latest results, the current consensus from Kura SushiInc's five analysts is for revenues of JP¥249.5b in 2025. This would reflect a decent 8.4% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to descend 12% to JP¥132 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥249.5b and earnings per share (EPS) of JP¥138 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at JP¥4,480, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Kura SushiInc at JP¥5,700 per share, while the most bearish prices it at JP¥3,800. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's pretty clear that there is an expectation that Kura SushiInc's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.6% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this to the 156 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.7% per year. Factoring in the forecast slowdown in growth, it looks like Kura SushiInc is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kura SushiInc. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at JP¥4,480, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Kura SushiInc analysts - going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Kura SushiInc Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.