Superior Group of Companies, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's shaping up to be a tough period for Superior Group of Companies, Inc. (NASDAQ:SGC), which a week ago released some disappointing first-quarter results that could have a notable impact on how the market views the stock. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at US$131m, statutory earnings missed forecasts by an incredible 49%, coming in at just US$0.06 per share. 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

Taking into account the latest results, the current consensus from Superior Group of Companies' three analysts is for revenues of US$591.5m in 2023, which would reflect a credible 4.5% increase on its sales over the past 12 months. Earnings are expected to improve, with Superior Group of Companies forecast to report a statutory profit of US$1.06 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$596.3m and earnings per share (EPS) of US$1.06 in 2023. 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$17.67, 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$18.00 per share, while the most bearish prices it at US$17.00. This is a very narrow spread of estimates, implying either that Superior Group of Companies is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Superior Group of Companies' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Superior Group of Companies' revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 6.1% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that Superior Group of Companies 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at US$17.67, 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. At Simply Wall St, we have a full range of analyst estimates for Superior Group of Companies going out to 2025, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Superior Group of Companies (1 makes us a bit uncomfortable) 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.