Earnings Update: AGC Inc. (TSE:5201) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

Investors in AGC Inc. (TSE:5201) had a good week, as its shares rose 6.4% to close at JP¥5,129 following the release of its quarterly results. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from AGC's eight analysts is for revenues of JP¥2.14t in 2026. This reflects a reasonable 4.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 63% to JP¥397. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥2.14t and earnings per share (EPS) of JP¥395 in 2026. 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.

See our latest analysis for AGC

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥4,965. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic AGC analyst has a price target of JP¥5,400 per share, while the most pessimistic values it at JP¥4,200. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the AGC's past performance and to peers in the same industry. It's pretty clear that there is an expectation that AGC's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.6% growth on an annualised basis. This is compared to a historical growth rate of 7.4% 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) 3.8% annually. So it's pretty clear that, while AGC's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at JP¥4,965, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for AGC going out to 2027, 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 2 warning signs 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.