US$45.00: That's What Analysts Think Global Industrial Company (NYSE:GIC) Is Worth After Its Latest Results

The quarterly results for Global Industrial Company (NYSE:GIC) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of US$348m and statutory earnings per share of US$0.52 both in line with analyst estimates, showing that Global Industrial is executing in line with expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Global Industrial

Taking into account the latest results, Global Industrial's twin analysts currently expect revenues in 2024 to be US$1.36b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 9.3% to US$1.97. Before this earnings report, the analysts had been forecasting revenues of US$1.37b and earnings per share (EPS) of US$1.93 in 2024. So the consensus seems to have become somewhat more optimistic on Global Industrial's earnings potential following these results.

The average the analysts price target fell 6.3% to US$45.00, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Global Industrial's revenue growth is expected to slow, with the forecast 1.4% annualised growth rate until the end of 2024 being well below the historical 7.3% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that Global Industrial is also expected to grow slower than other industry participants.

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 Global Industrial following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Global Industrial's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Global Industrial's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

Even so, be aware that Global Industrial 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.

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