The quarterly results for Global Industrial Company (NYSE:GIC) were released last week, making it a good time to revisit its performance. Results were roughly in line with estimates, with revenues of US$348m and statutory earnings per share of US$0.52. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Following last week's earnings report, Global Industrial's dual analysts are forecasting 2024 revenues to be US$1.36b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 9.3% to US$1.97. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.37b and earnings per share (EPS) of US$1.93 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target fell 6.3% to US$45.00, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns.

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 Global Industrial's revenue growth is expected to slow, with the forecast 1.4% annualised growth rate until the end of 2024 being well below the historical 7.3% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.6% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Global Industrial.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Global Industrial's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Global Industrial going out as far as 2025, and you can see them free on our platform here.

You still need to take note of risks, for example - Global Industrial has 1 warning sign we think 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.

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