Investors in Gildan Activewear Inc. (TSE:GIL) had a good week, as its shares rose 8.2% to close at CA$63.69 following the release of its first-quarter results. It was a credible result overall, with revenues of US$712m and statutory earnings per share of US$0.56 both in line with analyst estimates, showing that Gildan Activewear is executing in line with expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, Gildan Activewear's twelve analysts are now forecasting revenues of US$3.43b in 2025. This would be an okay 4.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 30% to US$3.50. In the lead-up to this report, the analysts had been modelling revenues of US$3.42b and earnings per share (EPS) of US$3.47 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.

See our latest analysis for Gildan Activewear

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CA$77.02. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Gildan Activewear, with the most bullish analyst valuing it at CA$85.02 and the most bearish at CA$70.60 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Gildan Activewear is an easy business to forecast or the the analysts are all using similar assumptions.

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. We would highlight that Gildan Activewear's revenue growth is expected to slow, with the forecast 5.9% annualised growth rate until the end of 2025 being well below the historical 8.4% p.a. growth over the last five years. Compare this to the 6 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.3% per year. So it's pretty clear that, while Gildan Activewear's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

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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. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Gildan Activewear analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Gildan Activewear has  2 warning signs  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.