Global Industrial Company (NYSE:GIC) Just Reported And Analysts Have Been Lifting Their Price Targets

Last week, you might have seen that Global Industrial Company (NYSE:GIC) released its annual result to the market. The early response was not positive, with shares down 5.6% to US$42.21 in the past week. Results were roughly in line with estimates, with revenues of US$1.3b and statutory earnings per share of US$1.84. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Global Industrial after the latest results.

Check out our latest analysis for Global Industrial

Taking into account the latest results, the current consensus from Global Industrial's two analysts is for revenues of US$1.37b in 2024. This would reflect a modest 7.5% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 9.3% to US$2.03. In the lead-up to this report, the analysts had been modelling revenues of US$1.33b and earnings per share (EPS) of US$2.05 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.

The consensus price target increased 12% to US$48.00, with an improved revenue forecast carrying the promise of a more valuable business, in time.

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. We can infer from the latest estimates that forecasts expect a continuation of Global Industrial'shistorical trends, as the 7.5% annualised revenue growth to the end of 2024 is roughly in line with the 6.6% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.3% per year. So although Global Industrial is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider 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. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Global Industrial , and understanding this should be part of your investment process.

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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.