Owens & Minor Earnings: Profit Rises for Fourth Straight Quarter
Owens & Minor Inc. (NYSE:OMI) reported its results for the second quarter. Owens & Minor is a distributor of medical and surgical supplies to the acute-care market and a healthcare supply-chain management company.
Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?
Owens & Minor Inc. Earnings Cheat Sheet
Results: Net income for Owens & Minor Inc. rose to $30.1 million (48 cents per share) vs. $29.2 million (46 cents per share) in the same quarter a year earlier. This marks a rise of 3.3% from the year-earlier quarter.
Revenue: Rose 2.5% to $2.19 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Owens & Minor Inc. fell short of the mean analyst estimate of 49 cents per share. It fell short of the average revenue estimate of $2.23 billion.
Quoting Management: “This quarter’s results highlight many of our traditional areas of strength, such as strong expense and asset management,” said Craig R. Smith, president & chief executive officer of Owens & Minor. “As a team, we continue to work on improving our profitability and advancing our strategic initiatives. We are excited about the Movianto transaction, which will bring together two companies with very similar cultures. We look forward to welcoming the Movianto team to the Owens & Minor family.”
The company has now seen its net income increase for three consecutive quarters. In the first quarter, net income rose 2.2% and in the fourth quarter of the last fiscal year, the figure rose 9.9%.
Revenue has increased for four consecutive quarters. Revenue increased 4.4% to $2.22 billion in the first quarter. The figure rose 6.1% in the fourth quarter of the last fiscal year from the year earlier and climbed 5.5% in the third quarter of the last fiscal year from the year-ago quarter.
For two quarters in a row, the company has come in under analyst estimates. In the first quarter, it missed expectations by 2 cents with net income of 46 cents versus a mean estimate of net income of 48 cents per share.
Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the third quarter is 54 cents per share, a drop from 55 cents. For the fiscal year, the average estimate has moved up from $2.05 a share to $2.08 over the last sixty days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Hot Additional Stories: