Yahoo Finance Superior Group of Companies, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Superior Group of Companies, Inc. (NASDAQ:SGC) just released its first-quarter report and things are looking bullish. The company beat forecasts, with revenue of US$139m, some 2.6% above estimates, and statutory earnings per share (EPS) coming in at US$0.24, 300% ahead of expectations. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Superior Group of Companies
Taking into account the latest results, the consensus forecast from Superior Group of Companies' dual analysts is for revenues of US$568.8m in 2024. This reflects a reasonable 3.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 7.7% to US$0.76. In the lead-up to this report, the analysts had been modelling revenues of US$563.2m and earnings per share (EPS) of US$0.65 in 2024. Although the revenue estimates have not really changed, we can see there's been a nice gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 7.7% to US$21.00.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Superior Group of Companies' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.2% growth on an annualised basis. This is compared to a historical growth rate of 8.5% 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 6.0% annually. Factoring in the forecast slowdown in growth, it seems obvious that Superior Group of Companies 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 Superior Group of Companies 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 Superior Group of Companies' revenue is expected to 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Superior Group of Companies. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Superior Group of Companies going out as far as 2025, 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 Superior Group of Companies 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.
