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. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the latest downgrade, the eight analysts covering Omnicell provided consensus estimates of US$1.1b revenue in 2024, which would reflect a definite 8.2% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$1.3b in 2024. The consensus view seems to have become more pessimistic on Omnicell, noting the measurable cut to revenue estimates in this update.

View our latest analysis for Omnicell

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 6.6% by the end of 2024. This indicates a significant reduction from annual growth of 11% 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 7.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Omnicell is expected to lag 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.

Thirsting for more data? 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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