Investors in Superior Group of Companies, Inc. (NASDAQ:SGC) had a good week, as its shares rose 5.7% to close at US$11.96 following the release of its quarterly results. Revenues were US$141m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.06, an impressive 500% ahead of estimates. 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, Superior Group of Companies' three analysts are forecasting 2026 revenues to be US$579.6m, approximately in line with the last 12 months. Per-share earnings are expected to grow 10% to US$0.61. Before this earnings report, the analysts had been forecasting revenues of US$578.7m and earnings per share (EPS) of US$0.59 in 2026. So the consensus seems to have become somewhat more optimistic on Superior Group of Companies' earnings potential following these results.

The consensus price target was unchanged at US$17.00, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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$20.00 per share, while the most bearish prices it at US$15.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 clear from the latest estimates that Superior Group of Companies' rate of growth is expected to accelerate meaningfully, with the forecast 2.3% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 0.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 5.4% annually. So it's clear that despite the acceleration in growth, Superior Group of Companies is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Superior Group of Companies' earnings potential next year. 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. The consensus price target held steady at US$17.00, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Superior Group of Companies going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Superior Group of Companies .

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.