It's been a good week for Griffon Corporation (NYSE:GFF) shareholders, because the company has just released its latest annual results, and the shares gained 6.3% to US$73.81. Griffon reported US$2.6b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$4.23 beat expectations, being 4.7% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Griffon after the latest results.

Check out our latest analysis for Griffon

Following last week's earnings report, Griffon's five analysts are forecasting 2025 revenues to be US$2.64b, approximately in line with the last 12 months. Per-share earnings are expected to jump 24% to US$5.46. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.66b and earnings per share (EPS) of US$5.50 in 2025. 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.5% to US$94.80. It looks as though they previously had some doubts over whether the business would live up to their expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Griffon analyst has a price target of US$100.00 per share, while the most pessimistic values it at US$92.00. This is a very narrow spread of estimates, implying either that Griffon is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that Griffon's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.6% growth on an annualised basis. This is compared to a historical growth rate of 6.5% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.3% 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 Griffon.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Griffon analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Griffon is showing 2 warning signs in our investment analysis , 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.