Global Industrial Company (NYSE:GIC) Analysts Are Pretty Bullish On The Stock After Recent Results
Shareholders might have noticed that Global Industrial Company (NYSE:GIC) filed its yearly result this time last week. The early response was not positive, with shares down 5.6% to US$42.21 in the past week. It was a credible result overall, with revenues of US$1.3b and statutory earnings per share of US$1.84 both in line with analyst estimates, showing that Global Industrial is executing in line with 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Global Industrial after the latest results.
View our latest analysis for Global Industrial
Taking into account the latest results, the current consensus from Global Industrial's two analysts is for revenues of US$1.37b in 2024. This would reflect an okay 7.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 9.3% to US$2.03. Before this earnings report, the analysts had been forecasting revenues of US$1.33b and earnings per share (EPS) of US$2.05 in 2024. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small increase to to revenue forecasts.
The consensus price target increased 12% to US$48.00, with an improved revenue forecast carrying the promise of a more valuable business, in time.
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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 7.5% growth on an annualised basis. That is in line with its 6.6% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.3% annually. So although Global Industrial is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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.
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 least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Global Industrial 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.
