Superior Group of Companies, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Shareholders of Superior Group of Companies, Inc. (NASDAQ:SGC) will be pleased this week, given that the stock price is up 17% to US$16.60 following its latest yearly results. It looks like a credible result overall - although revenues of US$543m were in line with what the analysts predicted, Superior Group of Companies surprised by delivering a statutory profit of US$0.55 per share, a notable 20% above expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Superior Group of Companies after the latest results.
See 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$563.2m in 2024. This reflects a modest 3.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 23% to US$0.65. In the lead-up to this report, the analysts had been modelling revenues of US$565.0m and earnings per share (EPS) of US$0.83 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.
Despite cutting their earnings forecasts,the analysts have lifted their price target 16% to US$18.00, suggesting that these impacts are not expected to weigh on the stock's value in the long term.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Superior Group of Companies' revenue growth is expected to slow, with the forecast 3.7% annualised growth rate until the end of 2024 being well below the historical 9.7% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.9% 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Superior Group of Companies. 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
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.
It is also worth noting that we have found 2 warning signs for Superior Group of Companies that you need to take into consideration.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
