Results: OMRON Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

Shareholders might have noticed that OMRON Corporation (TSE:6645) filed its half-yearly result this time last week. The early response was not positive, with shares down 4.9% to JP¥5,674 in the past week. Revenues JP¥375b disappointed slightly, at3.7% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of JP¥32.03 coming in 12% above what was anticipated. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on OMRON after the latest results.

View our latest analysis for OMRON

Taking into account the latest results, the current consensus from OMRON's eleven analysts is for revenues of JP¥820.0b in 2025. This would reflect a reasonable 3.4% increase on its revenue over the past 12 months. OMRON is also expected to turn profitable, with statutory earnings of JP¥65.12 per share. In the lead-up to this report, the analysts had been modelling revenues of JP¥827.0b and earnings per share (EPS) of JP¥66.38 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¥6,645. 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 OMRON, with the most bullish analyst valuing it at JP¥7,800 and the most bearish at JP¥5,600 per share. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting OMRON's growth to accelerate, with the forecast 7.0% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.0% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.3% per year. OMRON is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple OMRON analysts - 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 1 warning sign for OMRON 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.