As you might know, W.W. Grainger, Inc. (NYSE:GWW) just kicked off its latest quarterly results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 2.1% to hit US$5.2b. Statutory earnings per share (EPS) came in at US$12.42, some 6.5% above whatthe analysts had expected. 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 W.W. Grainger after the latest results.
Taking into account the latest results, the most recent consensus for W.W. Grainger from 15 analysts is for revenues of US$21.4b in 2027. If met, it would imply a decent 10% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 12% to US$51.93. In the lead-up to this report, the analysts had been modelling revenues of US$21.1b and earnings per share (EPS) of US$51.21 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
Check out our latest analysis for W.W. Grainger
The consensus price target rose 7.8% to US$1,435despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of W.W. Grainger's earnings by assigning a price premium. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values W.W. Grainger at US$1,600 per share, while the most bearish prices it at US$1,172. This is a very narrow spread of estimates, implying either that W.W. Grainger is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the W.W. Grainger's past performance and to peers in the same industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 8.2% growth on an annualised basis. That is in line with its 7.2% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 7.2% per year. It's clear that while W.W. Grainger's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for W.W. Grainger going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with W.W. Grainger .
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