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Organon & Co. (NYSE:OGN) shareholders are probably feeling a little disappointed, since its shares fell 3.1% to US$16.92 in the week after its latest quarterly results. Results were roughly in line with estimates, with revenues of US$1.6b and statutory earnings per share of US$3.99. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Organon after the latest results.
Check out our latest analysis for Organon
Taking into account the latest results, the most recent consensus for Organon from seven analysts is for revenues of US$6.54b in 2025. If met, it would imply an okay 2.1% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to plunge 25% to US$3.78 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$6.46b and earnings per share (EPS) of US$3.75 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$22.50, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Organon analyst has a price target of US$30.00 per share, while the most pessimistic values it at US$17.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Organon's past performance and to peers in the same industry. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2025. Historically, Organon's top line has shrunk approximately 2.4% annually over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 10% per year. Although Organon's revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.