Why Owens & Minor's Shares Are Trading Higher Today

Owens & Minor Inc OMI has reported adjusted EPS of $0.81 in Q4, lower than $1.14 a year ago but ahead of the consensus of $0.71.
Revenue for the quarter increased 4.45% to $2.47 billion, better than the consensus estimate of $2.43 billion.
Global Solutions segment revenue grew 3% to $2 billion due to strong performance in Patient Direct business combined with increased PPE sales, partially offset by continued supplier shortages.
Global Products segment revenue grew 9% to $629 million due to glove cost pass-through growth of non-PPE products.
The acquisition of Apria Inc APR remains on track to close in 1H of 2022. Excluding synergies, OMI expects Apria to generate:
- Annualized revenue of at least $1.2 billion.
- Annualized adjusted EBITDA over $230 million.
- Modest adjusted EPS accretion in 2022.
- The gross margin declined from 16.9% to 13.8%, and the operating margin contracted from 4% to 2.5%.
Guidance: Owens & Minor forecasts FY22 sales of $9.2 billion - $9.6 billion (consensus of $9.78 billion), with a Y/Y reduction in revenue of $(400-450) million as glove costs continue to normalize.
The Company expects PPE volumes to ease throughout the year.
It anticipates adjusted EPS of $3.00 - $3.50, versus the consensus of $3.35, with adjusted EBITDA of $400 million - $450 million.
Price Action: OMI shares are up 7.62% at $39.26 during the market session on the last check Wednesday.

Earnings Calendar