Owens & Minor Inc. (OMI:NYSE) today announced that it is increasing its full-year 2020 earnings guidance. The firm stated that "it is revising its outlook for full-year 2020 adjusted net income from $1.00 to $1.20 per share to adjusted net income of $1.75 to $1.90 per share." Owens & Minor noted that it does not expect that foreign exchange adjustments will have a significant impact on adjusted net income per share for FY/20.
The company advised that the upward revision in earnings guidance is primarily due to a result of several key factors. These include the firm's strong operational execution and productivity in its manufacturing operations. The firm indicated that the demand for personal protective equipment (PPE) remains strong and that it has benefited as its deployment of PPE related production equipment in the U.S. is proceeding ahead of schedule.
The company also noted that throughout most of the country, elective medical procedures volume has been rising slightly above prior expected levels.
The firm stated that it expects to register sequential earnings growth from Q2/20 to Q3/20 and then again from Q3/20 to Q4/20, which forms the basis for raising its FY/20 earnings guidance. The company further stated that it anticipates that the positive business trends will continue into 2021 as a result of its acceleration of strategic investments intended to drive future growth and its ability to rapidly adjust to a fluid market.
The company's President and CEO Edward A. Pesicka commented, "I continue to be very proud of our teammates' ability to rapidly bring additional, U.S.-based PPE production online ahead of schedule and increase product output. This is enabling us to continue to reduce the gap between customer demand and supply."
Owens & Minor is based in Richmond, Va., and is a global healthcare solutions company. The company employs about 15,000 people and markets its products and services in around 70 countries.
Owens & Minor began the day with a market capitalization of around $879.5 million with approximately 63.78 million shares outstanding and a short interest of about 11.9%. OMI shares opened 39% higher today at $19.19 (+$5.40, +39.16%) over yesterday's $13.79 closing price and reached a new 52-week high price this morning of $22.16. The stock has traded today between $19.10 and $22.16 per share and is currently trading at $20.79 (+$7.01, +50.80%).[NLINSERT]
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