Results: Superior Group of Companies, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Superior Group of Companies, Inc. (NASDAQ:SGC) just released its latest third-quarter results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 4.7% to hit US$150m. Superior Group of Companies also reported a statutory profit of US$0.33, which was an impressive 57% above what the analysts had forecast. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Superior Group of Companies

After the latest results, the three analysts covering Superior Group of Companies are now predicting revenues of US$590.1m in 2025. If met, this would reflect an okay 4.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 18% to US$0.97. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$590.1m and earnings per share (EPS) of US$0.97 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.

The analysts reconfirmed their price target of US$22.67, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Superior Group of Companies at US$24.00 per share, while the most bearish prices it at US$20.00. 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. We would highlight that Superior Group of Companies' revenue growth is expected to slow, with the forecast 3.2% annualised growth rate until the end of 2025 being well below the historical 6.2% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Superior Group of Companies.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Superior Group of Companies' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$22.67, with the latest estimates not enough to have an impact on their price targets.

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 Superior Group of Companies analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Superior Group of Companies that you need to take into consideration.

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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.