Why Are Owens & Minor Shares Surging Today?

Owens & Minor Inc OMI reported adjusted EPS of $0.74 in Q3, lower than $0.81 a year ago but ahead of the consensus of $0.55.
However, revenue for the quarter increased to $2.502 billion from $2.188 billion last year, better than the consensus estimate of $2.46 billion.
"In our Global Products segment, the advantage of having Americas owned and operated manufacturing facilities enables us to consistently provide our Halyard branded medical-grade products with minimal impact from global supply chain disruptions," said Edward Pesicka, President & CEO.
Owens & Minor reported a higher cost of goods sold to $2.2 billion, resulting in margin contraction, with the gross margin down to 13.1% from 15.7% and operating margin falling from 3.5% to 2.5%.
Guidance: The company has narrowed its full-year adjusted EPS to $3.90 - $4.10 (consensus $3.89) from $3.75 - $4.25.
OMI sees adjusted EBITDA of $475 million - $500 million, compared to earlier guidance of $450 million - $500 million.
The company also reaffirmed its previously announced 2022 guidance.
Price Action: OMI shares are up 15.4% at $42.69 during the market session on the last check Wednesday.

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