Results: Saizeriya Co.,Ltd. Beat Earnings Expectations And Analysts Now Have New Forecasts

Investors in Saizeriya Co.,Ltd. (TSE:7581) had a good week, as its shares rose 4.0% to close at JP¥5,240 following the release of its quarterly results. Revenues were JP¥67b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of JP¥63.51 were also better than expected, beating analyst predictions by 11%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from SaizeriyaLtd's ten analysts is for revenues of JP¥278.3b in 2026. This would reflect a meaningful 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 13% to JP¥247. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥278.8b and earnings per share (EPS) of JP¥249 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for SaizeriyaLtd

The analysts reconfirmed their price target of JP¥5,970, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values SaizeriyaLtd at JP¥7,200 per share, while the most bearish prices it at JP¥4,600. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SaizeriyaLtd's past performance and to peers in the same industry. We would highlight that SaizeriyaLtd's revenue growth is expected to slow, with the forecast 9.1% annualised growth rate until the end of 2026 being well below the historical 16% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.4% annually. Factoring in the forecast slowdown in growth, it looks like SaizeriyaLtd is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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¥5,970, 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 SaizeriyaLtd. 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 SaizeriyaLtd going out to 2027, and you can see them free on our platform here..

You can also see our analysis of SaizeriyaLtd'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.