Owens & Minor Inc. Earnings Cheat Sheet: Yet Another Quarter of Profitability

Owens & Minor Inc. (NYSE:OMI) reported its results for the third quarter. Owens & Minor is a distributor of medical and surgical supplies to the acute-care market and a healthcare supply-chain management company.

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Owens & Minor Earnings Cheat Sheet for the Third Quarter

Results: Net income for Owens & Minor Inc. rose to $33.4 million (53 cents per share) vs. $31.5 million (50 cents per share) in the same quarter a year earlier. This marks a rise of 5.9% from the year earlier quarter.

Revenue: Rose 5.5% to $2.18 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: OMI beat the mean analyst estimate of 51 cents per share. Analysts were expecting revenue of $2.16 billion.

Quoting Management: “During the third quarter, we worked very hard in a tough market to achieve solid results, including a strong top line and expense improvements,” said Craig R. Smith, president & chief executive officer of Owens & Minor. “As we finish out the year, we will continue to invest in the building blocks of our future with the upcoming conversion of a large new multi-state customer group, solidifying our third-party logistics business, implementing cost reduction measures, and establishing our new joint venture for sourcing in China.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 5.5% to $2.13 billion in the second quarter. The figure rose 7.8% in the first quarter from the year earlier and climbed 1.5% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the second quarter, it missed the mark by 3 cents, and in the first quarter, it fell short by 2 cents.

Net income has dropped 6.7% year over year on average across the last five quarters. Performance was hurt by a 32.6% decline in the fourth quarter of the last fiscal year from the year earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 55 cents per share to 54 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $1.97 per share, down from $2.03 ninety days ago.

Competitors to Watch: PSS World Medical, Inc. (NASDAQ:PSSI), Chindex Intl., Inc. (NASDAQ:CHDX), Henry Schein, Inc. (NASDAQ:HSIC), Patterson Companies, Inc. (NASDAQ:PDCO), Cardinal Health, Inc. (NYSE:CAH), McKesson Corporation (NYSE:MCK), AmerisourceBergen Corp. (NYSE:ABC), Lincare Holdings Inc. (NASDAQ:LNCR), and White Dental Supply Inc (WITD).

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)

 

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