Superior Group of Companies, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
It's shaping up to be a tough period for Superior Group of Companies, Inc. (NASDAQ:SGC), which a week ago released some disappointing second-quarter results that could have a notable impact on how the market views the stock. Superior Group of Companies missed analyst forecasts, with revenues of US$129m and statutory earnings per share (EPS) of US$0.08, falling short by 3.9% and 5.9% respectively. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Superior Group of Companies
Following last week's earnings report, Superior Group of Companies' dual analysts are forecasting 2023 revenues to be US$549.9m, approximately in line with the last 12 months. Earnings are expected to improve, with Superior Group of Companies forecast to report a statutory profit of US$0.46 per share. In the lead-up to this report, the analysts had been modelling revenues of US$580.3m and earnings per share (EPS) of US$0.90 in 2023. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.
The analysts made no major changes to their price target of US$17.50, suggesting the downgrades are not expected to have a long-term impact on Superior Group of Companies' valuation.
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. We would highlight that Superior Group of Companies' revenue growth is expected to slow, with the forecast 1.0% annualised growth rate until the end of 2023 being well below the historical 13% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.6% per year. 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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$17.50, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Superior Group of Companies (1 doesn't sit too well with us) 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.
