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

Owens & Minor Inc. (NASDAQ:OMI) reported its results for the second quarter. Owens & Minor, Inc. 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 Second Quarter

Results: Net income for the medical appliances and equipment company fell to $29.2 million (46 cents per share) vs. $29.5 million (46 cents per share) a year earlier. This is a decline of 0.9% from the year earlier quarter.

Revenue: Rose 5.5% to $2.13 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: OMI fell short of the mean analyst estimate of 49 cents per share. Analysts were expecting revenue of $2.11 billion.

Quoting Management: “Our second quarter was characterized by solid revenue growth, as we experienced a continuation of stronger purchasing trends from our healthcare customers,” said Craig R. Smith, president & chief executive officer of Owens & Minor. “Armed with prestigious customer awards for service and operational excellence, as well as the CIO 100 award for operational and strategic excellence in information technology, we look forward to providing our innovative and exceptional service to the market as we finish out the year.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 7.8% to $2.12 billion in the first quarter. The figure rose 1.5% in the fourth quarter of the last fiscal year from the year earlier and climbed 1.4% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 2 cents with net income of 45 cents versus a mean estimate of net income of 47 cents per share.

Net income has dropped 3% 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.

Gross margins grew 0.6 percentage point to 10.1%. The growth seemed to be driven by increased revenue, as the figure rose 5.5% from the year earlier quarter while costs rose 4.8%.

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).

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(Source: Xignite Financials)

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