The investors in J&J Snack Foods Corp.'s (NASDAQ:JJSF) will be rubbing their hands together with glee today, after the share price leapt 20% to US$91.91 in the week following its third-quarter results. Revenues were US$426m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.88 were also better than expected, beating analyst predictions by 15%. 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.

Taking into account the latest results, J&J Snack Foods' four analysts currently expect revenues in 2027 to be US$1.55b, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 64% to US$4.34. Before this earnings report, the analysts had been forecasting revenues of US$1.55b and earnings per share (EPS) of US$4.23 in 2027. So the consensus seems to have become somewhat more optimistic on J&J Snack Foods' earnings potential following these results.

The consensus price target rose 10.0% to US$111, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. There are some variant perceptions on J&J Snack Foods, with the most bullish analyst valuing it at US$120 and the most bearish at US$101 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that J&J Snack Foods' revenue growth is expected to slow, with the forecast 1.1% annualised growth rate until the end of 2027 being well below the historical 6.1% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 2.1% 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around J&J Snack Foods' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for J&J Snack Foods going out to 2028, and you can see them free on our platform here..

You should always think about risks though.

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.