Analysts Are Updating Their AGC Inc. (TSE:5201) Estimates After Its Third-Quarter Results

It's been a good week for AGC Inc. (TSE:5201) shareholders, because the company has just released its latest quarterly results, and the shares gained 7.3% to JP¥4,914. Results were roughly in line with estimates, with revenues of JP¥519b and statutory earnings per share of JP¥305. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for AGC

Following the latest results, AGC's ten analysts are now forecasting revenues of JP¥2.21t in 2025. This would be a satisfactory 6.6% improvement in revenue compared to the last 12 months. AGC is also expected to turn profitable, with statutory earnings of JP¥432 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥2.21t and earnings per share (EPS) of JP¥434 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥5,430. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values AGC at JP¥6,000 per share, while the most bearish prices it at JP¥4,890. This is a very narrow spread of estimates, implying either that AGC is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. 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 5.2% growth on an annualised basis. This is compared to a historical growth rate of 8.8% 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) 3.6% per year. So it's pretty clear that, while AGC's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥5,430, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for AGC going out to 2026, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for AGC that you need to be mindful 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.