Yahoo Finance Here's What Analysts Are Forecasting For W.W. Grainger, Inc. (NYSE:GWW) After Its First-Quarter Results
As you might know, W.W. Grainger, Inc. (NYSE:GWW) recently reported its first-quarter numbers. W.W. Grainger reported in line with analyst predictions, delivering revenues of US$4.2b and statutory earnings per share of US$36.23, suggesting the business is executing well and in line with its plan. 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. 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 W.W. Grainger
Taking into account the latest results, the consensus forecast from W.W. Grainger's 16 analysts is for revenues of US$17.4b in 2024. This reflects a reasonable 4.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 6.0% to US$39.31. In the lead-up to this report, the analysts had been modelling revenues of US$17.5b and earnings per share (EPS) of US$39.26 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$976. 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 W.W. Grainger analyst has a price target of US$1,125 per share, while the most pessimistic values it at US$570. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the W.W. Grainger's past performance and to peers in the same industry. We would highlight that W.W. Grainger's revenue growth is expected to slow, with the forecast 6.6% annualised growth rate until the end of 2024 being well below the historical 9.2% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.7% annually. Factoring in the forecast slowdown in growth, it looks like W.W. Grainger is forecast to grow at about the same rate as the wider industry.
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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. At Simply Wall St, we have a full range of analyst estimates for W.W. Grainger going out to 2026, and you can see them free on our platform here..
Even so, be aware that W.W. Grainger is showing 1 warning sign in our investment analysis , you should know about...
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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.
