NGK Insulators, Ltd. (TSE:5333) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

NGK Insulators, Ltd. (TSE:5333) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a workmanlike result, with revenues of JP¥153b coming in 3.3% ahead of expectations, and statutory earnings per share of JP¥134, in line with analyst appraisals. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on NGK Insulators after the latest results.

Check out our latest analysis for NGK Insulators

After the latest results, the six analysts covering NGK Insulators are now predicting revenues of JP¥614.8b in 2025. If met, this would reflect a reasonable 4.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 34% to JP¥178. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥613.3b and earnings per share (EPS) of JP¥177 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¥2,133. 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. There are some variant perceptions on NGK Insulators, with the most bullish analyst valuing it at JP¥2,500 and the most bearish at JP¥1,720 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of NGK Insulators'historical trends, as the 5.6% annualised revenue growth to the end of 2025 is roughly in line with the 6.9% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.8% annually. It's clear that while NGK Insulators' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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¥2,133, 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 NGK Insulators. Long-term earnings power is much more important than next year's profits. We have forecasts for NGK Insulators going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for NGK Insulators that you should be aware 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.

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