Saizeriya Co.,Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Saizeriya Co.,Ltd. (TSE:7581) investors will be delighted, with the company turning in some strong numbers with its latest results. Results were good overall, with revenues beating analyst predictions by 2.3% to hit JP¥61b. Statutory earnings per share (EPS) came in at JP¥54.06, some 5.5% above whatthe analysts had expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for SaizeriyaLtd

Taking into account the latest results, the most recent consensus for SaizeriyaLtd from ten analysts is for revenues of JP¥250.1b in 2025. If met, it would imply a reasonable 7.2% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 40% to JP¥230. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥249.9b and earnings per share (EPS) of JP¥236 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at JP¥6,730, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic SaizeriyaLtd analyst has a price target of JP¥7,800 per share, while the most pessimistic values it at JP¥5,500. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of SaizeriyaLtd'shistorical trends, as the 9.8% annualised revenue growth to the end of 2025 is roughly in line with the 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.0% annually. So it's pretty clear that SaizeriyaLtd is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for SaizeriyaLtd. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts 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.