Owens & Minor Earnings: Here’s Why Investors Like These Results

Owens & Minor Inc. (NYSE:OMI) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.82%.

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Owens & Minor Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 4.35% to $0.44 in the quarter versus EPS of $0.46 in the year-earlier quarter.

Revenue: Rose 2.61% to $2.28 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Owens & Minor Inc. reported adjusted EPS income of $0.44 per share. By that measure, the company beat the mean analyst estimate of $0.43. It missed the average revenue estimate of $2.28 billion.

Quoting Management: “In looking at our quarterly results, we see that Owens & Minor is adapting to a changing healthcare market and is investing in areas that will provide us with opportunities for the future,” said Craig R. Smith, president & chief executive officer of Owens & Minor. “We continue to invest in our Domestic business to ensure that we have the necessary flexibility to serve our customers in healthcare. Internationally, we are working intently to integrate Movianto, fill excess capacity in the network, and reduce the cost structure. As we work through the integration, we remain excited about the opportunities in Europe.”

Key Stats (on next page)…

Revenue decreased 2.12% from $2.32 billion in the previous quarter. EPS increased 7.32% from $0.41 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.48 to a profit $0.46. For the current year, the average estimate has moved down from a profit of $1.95 to a profit of $1.89 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)