In This Article:
It's been a mediocre week for J&J Snack Foods Corp. (NASDAQ:JJSF) shareholders, with the stock dropping 11% to US$122 in the week since its latest quarterly results. Statutory earnings per share fell badly short of expectations, coming in at US$0.26, some 53% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$363m. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for J&J Snack Foods
After the latest results, the five analysts covering J&J Snack Foods are now predicting revenues of US$1.63b in 2025. If met, this would reflect a reasonable 2.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 9.4% to US$4.74. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.63b and earnings per share (EPS) of US$5.43 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.
It might be a surprise to learn that the consensus price target fell 8.4% to US$172, with the analysts clearly linking lower forecast earnings to the performance of the stock price. 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 J&J Snack Foods at US$175 per share, while the most bearish prices it at US$161. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that J&J Snack Foods' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.5% growth on an annualised basis. This is compared to a historical growth rate of 9.9% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.4% per year. So it's pretty clear that, while J&J Snack Foods' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.