Earnings Miss: OMRON Corporation Missed EPS And Analysts Are Revising Their Forecasts

Shareholders might have noticed that OMRON Corporation (TSE:6645) filed its quarterly result this time last week. The early response was not positive, with shares down 6.4% to JP¥5,235 in the past week. It was a pretty negative result overall, with revenues of JP¥184b missing analyst predictions by 3.6%. Worse, the business reported a statutory loss of JP¥48.89 per share, a substantial decline on analyst expectations of a profit. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for OMRON

After the latest results, the ten analysts covering OMRON are now predicting revenues of JP¥843.0b in 2025. If met, this would reflect a satisfactory 5.5% improvement in revenue compared to the last 12 months. OMRON is also expected to turn profitable, with statutory earnings of JP¥66.02 per share. In the lead-up to this report, the analysts had been modelling revenues of JP¥849.3b and earnings per share (EPS) of JP¥61.48 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at JP¥6,073, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 OMRON at JP¥7,800 per share, while the most bearish prices it at JP¥5,000. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 clear from the latest estimates that OMRON's rate of growth is expected to accelerate meaningfully, with the forecast 7.4% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.4% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that OMRON is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards OMRON following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 OMRON going out to 2027, and you can see them free on our platform here.

We also provide an overview of the OMRON Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com