How reliable are GRC's earnings forecasts based on 2024 data?

**The Gorman-Rupp Company (GRC) exhibits mixed reliability in its earnings forecasts based on 2024 data.** Here's an analysis to support this conclusion: 1. **Analyst Estimates Variance**: GRC's earnings estimates have been revised by analysts at Sidoti Csr. Initially, J. Franzreb anticipated Q2 2024 EPS of $0.42, which was later increased to $0.44. This variance suggests that while analysts recognize GRC's potential, there are differing views on the company's performance. 2. **Historical Performance**: GRC's financials for 2024 show a net income of $40.12 million and a total revenue of $659.67 million. The company's diluted EPS was $1.53, with a growth rate of 0.14%. This modest growth rate indicates a stable but not exceptionally strong earnings trajectory. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |GRC|GRC.N|The Gorman-Rupp|2024 Q1|20.92024539877301|-0.7465755985691673|19.999999999999996|169| |GRC|GRC.N|The Gorman-Rupp|2024 Q2|-20.44478381215997|-0.8835017307512396|-20.000000000000004|169| |GRC|GRC.N|The Gorman-Rupp|2024 Q3|43.89619068834929|0.43354672272119243|44.117647058823515|169| |GRC|GRC.N|The Gorman-Rupp|2024 Q4|22.2927807486631|1.332170771961511||169| |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |GRC|GRC.N|The Gorman-Rupp|2024 Q1|20.92024539877301|7884000|169| |GRC|GRC.N|The Gorman-Rupp|2024 Q2|-20.44478381215997|8335000|169| |GRC|GRC.N|The Gorman-Rupp|2024 Q3|43.89619068834929|1.2919E7|169| |GRC|GRC.N|The Gorman-Rupp|2024 Q4|22.2927807486631|1.0977E7|169| |code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code| |---|---|---|---|---|---|---| |GRC|GRC.N|The Gorman-Rupp|2024 Q1|-0.7465755985691673|1.59268E8|169| |GRC|GRC.N|The Gorman-Rupp|2024 Q2|-0.8835017307512396|1.69513E8|169| |GRC|GRC.N|The Gorman-Rupp|2024 Q3|0.43354672272119243|1.68182E8|169| |GRC|GRC.N|The Gorman-Rupp|2024 Q4|1.332170771961511|1.62704E8|169| |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |GRC|GRC.N|The Gorman-Rupp|2024 Q1|19.999999999999996|0.3|169| |GRC|GRC.N|The Gorman-Rupp|2024 Q2|-20.000000000000004|0.32|169| |GRC|GRC.N|The Gorman-Rupp|2024 Q3|44.117647058823515|0.49|169| 3. **Earnings Miss**: In Q2 2024, GRC reported an EPS of $0.30, missing the consensus estimate of $0.35 by $0.05. This recent miss suggests that while GRC's full-year estimates may be accurate, the company faces challenges in meeting quarterly expectations. 4. **Dividend and Financial Health**: GRC has a history of dividend payments, with a recent increase indicating financial stability. The company's financial ratios, such as the quick ratio of 1.31 and current ratio of 2.35, suggest adequate liquidity. However, a debt-to-equity ratio of 1.09 indicates moderate debt levels. 5. **Market Position and Growth Prospects**: GRC's focus on water infrastructure and industrial products positions it well for potential growth in the water management systems market, which is expected to grow significantly. The company's revenue and EBITDA have shown historical growth, indicating a strong market presence. In conclusion, while GRC's 2024 earnings forecasts show a stable financial performance with potential for growth, the variability in analyst estimates and recent earnings miss suggest that these forecasts are not entirely reliable. Investors should consider both the company's stable financials and the potential risks when evaluating GRC's earnings forecasts.