J&J Snack Foods Corp. (NASDAQ:JJSF) just released its second-quarter report and things are looking bullish. The company beat forecasts, with revenue of US$360m, some 5.6% above estimates, and statutory earnings per share (EPS) coming in at US$0.69, 33% ahead of expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for J&J Snack Foods

Taking into account the latest results, J&J Snack Foods' four analysts currently expect revenues in 2024 to be US$1.58b, approximately in line with the last 12 months. Statutory earnings per share are predicted to grow 12% to US$4.98. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.57b and earnings per share (EPS) of US$4.81 in 2024. So the consensus seems to have become somewhat more optimistic on J&J Snack Foods' earnings potential following these results.

The consensus price target was unchanged at US$176, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values J&J Snack Foods at US$205 per share, while the most bearish prices it at US$155. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. 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 2024 expected to display 0.4% growth on an annualised basis. This is compared to a historical growth rate of 8.0% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 2.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that J&J Snack Foods is also expected to grow slower than other industry participants.

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 J&J Snack Foods following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that J&J Snack Foods' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$176, 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. At Simply Wall St, we have a full range of analyst estimates for J&J Snack Foods going out to 2026, and you can see them free on our platform here..

You can also see our analysis of J&J Snack Foods' 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.