OMRON Corporation (TSE:6645) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year

Last week, you might have seen that OMRON Corporation (TSE:6645) released its third-quarter result to the market. The early response was not positive, with shares down 5.5% to JP¥4,631 in the past week. Revenues of JP¥205b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at JP¥53.33, missing estimates by 4.6%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for OMRON

Following the latest results, OMRON's ten analysts are now forecasting revenues of JP¥861.6b in 2026. This would be a solid 9.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 589% to JP¥260. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥865.8b and earnings per share (EPS) of JP¥262 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.

The analysts reconfirmed their price target of JP¥6,291, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on OMRON, with the most bullish analyst valuing it at JP¥7,400 and the most bearish at JP¥4,900 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await OMRON shareholders.

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 7.1% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 5.3% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.2% 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 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 in mind, we wouldn't be too quick to come to a conclusion on OMRON. Long-term earnings power is much more important than next year's profits. We have forecasts for OMRON going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for OMRON (of which 1 shouldn't be ignored!) you should know about.

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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.