Griffon Corporation Just Beat EPS By 13%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Griffon Corporation (NYSE:GFF) filed its second-quarter result this time last week. The early response was not positive, with shares down 3.6% to US$68.48 in the past week. Revenues were US$612m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.21 were also better than expected, beating analyst predictions by 13%. 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 Griffon after the latest results.

Our free stock report includes 1 warning sign investors should be aware of before investing in Griffon. Read for free now.

Following last week's earnings report, Griffon's seven analysts are forecasting 2025 revenues to be US$2.57b, approximately in line with the last 12 months. Per-share earnings are expected to swell 18% to US$5.78. Before this earnings report, the analysts had been forecasting revenues of US$2.60b and earnings per share (EPS) of US$5.72 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.

Check out our latest analysis for Griffon

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$97.14. 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 Griffon at US$115 per share, while the most bearish prices it at US$90.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Griffon is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Griffon's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Griffon's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.2% growth on an annualised basis. This is compared to a historical growth rate of 5.1% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that Griffon is also expected to grow slower than other industry participants.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Griffon's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$97.14, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Griffon going out to 2027, and you can see them free on our platform here..

Even so, be aware that Griffon is showing 1 warning sign in our investment analysis , you should know about...

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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.