Analysts Have Made A Financial Statement On Globe Life Inc.'s (NYSE:GL) Annual Report
Investors in Globe Life Inc. (NYSE:GL) had a good week, as its shares rose 4.2% to close at US$126 following the release of its annual results. It was a credible result overall, with revenues of US$5.4b and statutory earnings per share of US$10.07 both in line with analyst estimates, showing that Globe Life is executing in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Globe Life after the latest results.
View our latest analysis for Globe Life
After the latest results, the eight analysts covering Globe Life are now predicting revenues of US$5.82b in 2024. If met, this would reflect a credible 6.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 10% to US$11.39. In the lead-up to this report, the analysts had been modelling revenues of US$5.78b and earnings per share (EPS) of US$11.36 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.
The analysts reconfirmed their price target of US$137, 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. There are some variant perceptions on Globe Life, with the most bullish analyst valuing it at US$160 and the most bearish at US$125 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Globe Life's past performance and to peers in the same industry. The analysts are definitely expecting Globe Life's growth to accelerate, with the forecast 6.9% 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 5.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Globe Life is expected 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. 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Globe Life. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Globe Life analysts - going out to 2026, and you can see them free on our platform here.
Even so, be aware that Globe Life 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.
