Global Industrial Company (NYSE:GIC) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of US$321m, some 4.6% above estimates, and statutory earnings per share (EPS) coming in at US$0.35, 75% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from Global Industrial's twin analysts is for revenues of US$1.36b in 2025. This reflects a modest 3.4% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$1.61, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$1.33b and earnings per share (EPS) of US$1.44 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a decent improvement in earnings per share in particular.
See our latest analysis for Global Industrial
Despite these upgrades,the analysts have not made any major changes to their price target of US$38.00, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.
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 Global Industrial's revenue growth is expected to slow, with the forecast 4.5% annualised growth rate until the end of 2025 being well below the historical 7.1% 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 6.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that Global Industrial 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 Global Industrial following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than 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.
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. We have analyst estimates for Global Industrial going out as far as 2027, and you can see them free on our platform here.
We also provide an overview of the Global Industrial Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.