Superior Group of Companies, Inc. (NASDAQ:SGC) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Superior Group of Companies reported in line with analyst predictions, delivering revenues of US$146m and statutory earnings per share of US$0.17, suggesting the business is executing well and in line with its plan. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Superior Group of Companies' three analysts is for revenues of US$614.0m in 2027. This reflects a reasonable 5.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 79% to US$0.91. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$605.6m and earnings per share (EPS) of US$0.83 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
View our latest analysis for Superior Group of Companies
The consensus price target was unchanged at US$18.67, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic Superior Group of Companies analyst has a price target of US$20.00 per share, while the most pessimistic values it at US$18.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Superior Group of Companies' rate of growth is expected to accelerate meaningfully, with the forecast 4.5% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 1.0% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 4.3% per year. Superior Group of Companies is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
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 Superior Group of Companies following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.
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 estimates - from multiple Superior Group of Companies analysts - going out to 2028, and you can see them free on our platform here.
You still need to take note of risks, for example - Superior Group of Companies has 2 warning signs we think you should be aware of.
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