Superior Group of Companies, Inc. Just Missed EPS By 5.6%: Here's What Analysts Think Will Happen Next

It's been a mediocre week for Superior Group of Companies, Inc. (NASDAQ:SGC) shareholders, with the stock dropping 19% to US$11.15 in the week since its latest yearly results. It looks like the results were a bit of a negative overall. While revenues of US$566m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.6% to hit US$0.73 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Superior Group of Companies

Taking into account the latest results, the consensus forecast from Superior Group of Companies' three analysts is for revenues of US$588.3m in 2025. This reflects a reasonable 4.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 7.8% to US$0.79. Before this earnings report, the analysts had been forecasting revenues of US$591.3m and earnings per share (EPS) of US$0.99 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

It might be a surprise to learn that the consensus price target fell 10% to US$20.67, with the analysts clearly linking lower forecast earnings to the performance of the stock price. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Superior Group of Companies, with the most bullish analyst valuing it at US$24.00 and the most bearish at US$18.00 per share. 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.

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 Superior Group of Companies'historical trends, as the 4.0% annualised revenue growth to the end of 2025 is roughly in line with the 4.9% 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 Superior Group of Companies is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment 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 Superior Group of Companies' revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Superior Group of Companies that you need to be mindful 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.