Omnicell, Inc. (NASDAQ:OMCL) Analysts Just Slashed Next Year's Revenue Estimates By 14%

The analysts covering Omnicell, Inc. (NASDAQ:OMCL) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the consensus from eight analysts covering Omnicell is for revenues of US$1.1b in 2024, implying an uneasy 8.2% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$1.3b in 2024. It looks like forecasts have become a fair bit less optimistic on Omnicell, given the measurable cut to revenue estimates.

View our latest analysis for Omnicell

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. We would highlight that sales are expected to reverse, with a forecast 6.6% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.7% annually for the foreseeable future. It's pretty clear that Omnicell's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Omnicell next year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Omnicell after today.

Of course, this isn't the full story. At least one of Omnicell's eight analysts has provided estimates out to 2025, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.