It's been a mediocre week for Omnicell, Inc. (NASDAQ:OMCL) shareholders, with the stock dropping 19% to US$25.39 in the week since its latest quarterly results. The results don't look great, especially considering that statutory losses grew 87% toUS$0.15 per share. Revenues of US$270m did beat expectations by 3.7%, but it looks like a bit of a cold comfort. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.NasdaqGS:OMCL Earnings and Revenue Growth May 9th 2025

Taking into account the latest results, Omnicell's nine analysts currently expect revenues in 2025 to be US$1.13b, approximately in line with the last 12 months. Earnings are expected to tip over into lossmaking territory, with the analysts forecasting statutory losses of -US$0.30 per share in 2025. In the lead-up to this report, the analysts had been modelling revenues of US$1.13b and earnings per share (EPS) of US$0.62 in 2025. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.

See our latest analysis for Omnicell

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 24% to US$38.50, with the analysts signalling that growing losses would be a definite concern. 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 Omnicell analyst has a price target of US$48.00 per share, while the most pessimistic values it at US$30.00. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Omnicell's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 0.6% annualised decline to the end of 2025. That is a notable change from historical growth of 4.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.1% per year. It's pretty clear that Omnicell's revenues are expected to perform substantially worse than the wider industry.

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The Bottom Line

The most important thing to take away is that the analysts are expecting Omnicell to become unprofitable next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Omnicell's revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Omnicell analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified  1 warning sign for Omnicell 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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