Gildan Activewear Inc. (TSE:GIL) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Investors in Gildan Activewear Inc. (TSE:GIL) had a good week, as its shares rose 7.9% to close at CA$78.09 following the release of its full-year results. Gildan Activewear reported in line with analyst predictions, delivering revenues of US$3.3b and statutory earnings per share of US$2.46, suggesting the business is executing well and in line with its plan. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Gildan Activewear

Taking into account the latest results, the most recent consensus for Gildan Activewear from twelve analysts is for revenues of US$3.42b in 2025. If met, it would imply a reasonable 4.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 33% to US$3.52. Before this earnings report, the analysts had been forecasting revenues of US$3.40b and earnings per share (EPS) of US$3.50 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of CA$77.12, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Gildan Activewear at CA$87.87 per share, while the most bearish prices it at CA$61.50. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Gildan Activewear's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.7% growth on an annualised basis. This is compared to a historical growth rate of 7.8% over the past five years. Compare this to the 6 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.5% per year. Factoring in the forecast slowdown in growth, it looks like Gildan Activewear is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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.

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 estimates - from multiple Gildan Activewear analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Gildan Activewear has 2 warning signs we think 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.