AGC Inc. (TSE:5201) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

The first-quarter results for AGC Inc. (TSE:5201) were released last week, making it a good time to revisit its performance. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 6.9%to hit JP¥500b. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 1 warning sign about AGC. View them for free.

Taking into account the latest results, the consensus forecast from AGC's nine analysts is for revenues of JP¥2.16t in 2025. This reflects a reasonable 4.3% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with AGC forecast to report a statutory profit of JP¥391 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥2.16t and earnings per share (EPS) of JP¥396 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.

Check out our latest analysis for AGC

The analysts reconfirmed their price target of JP¥4,947, showing that the business is executing well and in line with 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. There are some variant perceptions on AGC, with the most bullish analyst valuing it at JP¥5,500 and the most bearish at JP¥4,300 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting AGC 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. It's pretty clear that there is an expectation that AGC's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.8% growth on an annualised basis. This is compared to a historical growth rate of 8.6% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.0% per year. Even after the forecast slowdown in growth, it seems obvious that AGC is also expected to grow faster than the wider industry.

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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at JP¥4,947, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on AGC. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for AGC going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for AGC that we have uncovered.

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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.