Earnings Miss: Globe Life Inc. Missed EPS By 6.1% And Analysts Are Revising Their Forecasts

Globe Life Inc. (NYSE:GL) 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. Revenues of US$1.5b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$3.01, missing estimates by 6.1%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Globe Life after the latest results.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

After the latest results, the seven analysts covering Globe Life are now predicting revenues of US$6.06b in 2025. If met, this would reflect a credible 3.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 4.7% to US$13.47. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.05b and earnings per share (EPS) of US$13.51 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.

Check out our latest analysis for Globe Life

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$141. 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. There are some variant perceptions on Globe Life, with the most bullish analyst valuing it at US$188 and the most bearish at US$111 per share. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 5.0% growth on an annualised basis. That is in line with its 4.7% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.2% annually. So although Globe Life is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$141, with the latest estimates not enough to have an impact on their price targets.

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

However, before you get too enthused, we've discovered 1 warning sign for Globe Life that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.