Yahoo Finance Globe Life Inc. Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?
It's been a good week for Globe Life Inc. (NYSE:GL) shareholders, because the company has just released its latest full-year results, and the shares gained 3.7% to US$108. Results were roughly in line with estimates, with revenues of US$4.5b and statutory earnings per share of US$6.83. 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 analysts are expecting for next year.
Check out our latest analysis for Globe Life
Taking into account the latest results, the latest consensus from Globe Life's five analysts is for revenues of US$4.70b in 2020, which would reflect a modest 3.7% improvement in sales compared to the last 12 months. Statutory per-share earnings are expected to be US$6.99, roughly flat on the last 12 months. In the lead-up to this report, analysts had been modelling revenues of US$4.69b and earnings per share (EPS) of US$7.06 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Analysts reconfirmed their price target of US$105, showing that the business is executing well and in line with expectations. 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. The most optimistic Globe Life analyst has a price target of US$120 per share, while the most pessimistic values it at US$86.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Globe Life's revenue growth is expected to slow, with forecast 3.7% increase next year well below the historical 5.1%p.a. growth over the last five years. By way of comparison, other companies in this market with analyst coverage, are forecast to grow their revenue at 2.0% next year. Even after the forecast slowdown in growth, it seems obvious that analysts still thinkGlobe Life will grow faster than the wider market.
The Bottom Line
The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - and our data does suggest that Globe Life's revenues are expected to grow faster than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Globe Life analysts - going out to 2022, and you can see them free on our platform here.
You can also see whether Globe Life is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
