US$38.50: That's What Analysts Think Omnicell, Inc. (NASDAQ:OMCL) Is Worth After Its Latest Results

There's been a notable change in appetite for Omnicell, Inc. (NASDAQ:OMCL) shares in the week since its first-quarter report, with the stock down 19% to US$25.39. 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. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Omnicell after the latest results.

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Following last week's earnings report, Omnicell's nine analysts are forecasting 2025 revenues to be US$1.13b, approximately in line with the last 12 months. The company is forecast to report a statutory loss of US$0.30 in 2025, a sharp decline from a profit over the last year. 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. While the analysts have made no real change to their revenue estimates, we can see that the consensus is now modelling a loss next year - a clear dip in sentiment compared to the previous outlook of a profit.

See our latest analysis for Omnicell

The consensus price target fell 24% to US$38.50per share, with the analysts clearly concerned by ballooning losses. 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. Currently, the most bullish analyst values Omnicell at US$48.00 per share, while the most bearish prices it at US$30.00. 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 Omnicell shareholders.

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.

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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Omnicell's future valuation.

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.

It is also worth noting that we have found 1 warning sign for Omnicell that you need to take into consideration.

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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.