Shareholders in Kura Sushi USA, Inc. (NASDAQ:KRUS) had a terrible week, as shares crashed 21% to US$52.26 in the week since its latest annual results. Revenues were US$187m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.14 were also better than expected, beating analyst predictions by 13%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Kura Sushi USA
After the latest results, the seven analysts covering Kura Sushi USA are now predicting revenues of US$240.8m in 2024. If met, this would reflect a sizeable 28% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 160% to US$0.35. In the lead-up to this report, the analysts had been modelling revenues of US$244.2m and earnings per share (EPS) of US$0.58 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.
The average price target fell 12% to US$77.43, with reduced earnings forecasts clearly tied to a lower valuation estimate. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Kura Sushi USA, with the most bullish analyst valuing it at US$100.00 and the most bearish at US$55.00 per share. 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 Kura Sushi USA's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Kura Sushi USA'shistorical trends, as the 28% annualised revenue growth to the end of 2024 is roughly in line with the 31% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So although Kura Sushi USA is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kura Sushi USA. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Kura Sushi USA's future valuation.
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 Kura Sushi USA going out to 2026, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Kura Sushi USA (1 shouldn't be ignored) you should be aware of.
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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.