NGK Insulators, Ltd. Just Beat Revenue Estimates By 11%

It's been a good week for NGK Insulators, Ltd. (TSE:5333) shareholders, because the company has just released its latest quarterly results, and the shares gained 7.4% to JP¥2,056. It was a mildly positive result, with revenues exceeding expectations at JP¥166b, while statutory earnings per share (EPS) of JP¥186 were in line with analyst forecasts. 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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Following last week's earnings report, NGK Insulators' six analysts are forecasting 2026 revenues to be JP¥638.7b, approximately in line with the last 12 months. Statutory earnings per share are expected to reduce 9.1% to JP¥192 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥636.7b and earnings per share (EPS) of JP¥191 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.

View our latest analysis for NGK Insulators

There were no changes to revenue or earnings estimates or the price target of JP¥1,988, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values NGK Insulators at JP¥2,300 per share, while the most bearish prices it at JP¥1,640. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that NGK Insulators' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 1.1% growth on an annualised basis. This is compared to a historical growth rate of 7.7% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that NGK Insulators is also expected to grow slower than other industry participants.

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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that NGK Insulators' revenue is expected to perform worse than 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 forecasts for NGK Insulators going out to 2028, 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 NGK Insulators 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.