Kura Sushi,Inc. (TSE:2695) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Investors in Kura Sushi,Inc. (TSE:2695) had a good week, as its shares rose 2.8% to close at JP¥4,410 following the release of its first-quarter results. It was a credible result overall, with revenues of JP¥56b and statutory earnings per share of JP¥21.72 both in line with analyst estimates, showing that Kura SushiInc is executing in line with expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Kura SushiInc

Taking into account the latest results, the current consensus from Kura SushiInc's six analysts is for revenues of JP¥230.6b in 2024. This would reflect a reasonable 6.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 29% to JP¥89.39. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥229.2b and earnings per share (EPS) of JP¥79.87 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the substantial gain in earnings per share expectations following these results.

There's been no major changes to the consensus price target of JP¥3,700, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Kura SushiInc at JP¥4,300 per share, while the most bearish prices it at JP¥2,800. 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. We can infer from the latest estimates that forecasts expect a continuation of Kura SushiInc'shistorical trends, as the 8.9% annualised revenue growth to the end of 2024 is roughly in line with the 11% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 7.4% per year. It's clear that while Kura SushiInc's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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 Kura SushiInc following these results. 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¥3,700, 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 Kura SushiInc. Long-term earnings power is much more important than next year's profits. We have forecasts for Kura SushiInc going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Kura SushiInc's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.