Superior Group of Companies, Inc. Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next

Superior Group of Companies, Inc. (NASDAQ:SGC) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Things were not great overall, with a surprise (statutory) loss of US$0.05 per share on revenues of US$137m, even though the analysts had been expecting a profit. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following last week's earnings report, Superior Group of Companies' three analysts are forecasting 2025 revenues to be US$569.1m, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 70% to US$0.78. In the lead-up to this report, the analysts had been modelling revenues of US$587.2m and earnings per share (EPS) of US$0.99 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

View our latest analysis for Superior Group of Companies

It'll come as no surprise then, to learn that the analysts have cut their price target 16% to US$17.33. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Superior Group of Companies analyst has a price target of US$20.00 per share, while the most pessimistic values it at US$14.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 would highlight that Superior Group of Companies' revenue growth is expected to slow, with the forecast 1.2% annualised growth rate until the end of 2025 being well below the historical 3.5% 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 5.4% 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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Superior Group of Companies. Long-term earnings power is much more important than next year's profits. We have forecasts for Superior Group of Companies going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Superior Group of Companies 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.