Yahoo Finance Globe Life Inc. (NYSE:GL) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year
Investors in Globe Life Inc. (NYSE:GL) had a good week, as its shares rose 2.8% to close at US$90.69 following the release of its quarterly results. Results were roughly in line with estimates, with revenues of US$1.4b and statutory earnings per share of US$2.83. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Globe Life
Taking into account the latest results, the most recent consensus for Globe Life from eight analysts is for revenues of US$5.82b in 2024. If met, it would imply an okay 2.8% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$11.54, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.83b and earnings per share (EPS) of US$11.53 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$106, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Globe Life analyst has a price target of US$160 per share, while the most pessimistic values it at US$66.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Globe Life's growth to accelerate, with the forecast 5.7% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.7% annually. Globe Life is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.
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. We have estimates - from multiple Globe Life analysts - going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Globe Life 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.
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