Owens & Minor, Inc. Third Quarter Earnings Sneak Peek

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Owens & Minor, Inc. (NYSE:OMI) will unveil its latest earnings on Monday, October 29, 2012. Owens & Minor is a distributor of medical and surgical supplies to the acute-care market and a healthcare supply-chain management company.

Owens & Minor, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 51 cents per share, a decline of 3.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 50 cents. Between one and three months ago, the average estimate was unchanged. It has risen during the last month. Analysts are projecting profit to rise by 2.1% versus last year to $1.98.

Past Earnings Performance: The company is looking to break the streak of missing estimates in the past two quarters. Last quarter, it fell short of analyst expectations by reporting net income of 48 cents per share against an estimate of profit of 49 cents per share. The quarter before that, it missed forecasts by 2 cents.

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Stock Price Performance: Between September 25, 2012 and October 23, 2012, the stock price dropped $1.63 (-5.4%), from $30.13 to $28.50. The stock price saw one of its best stretches over the last year between September 12, 2012 and September 21, 2012, when shares rose for eight straight days, increasing 7.1% (+$2.03) over that span. It saw one of its worst periods between November 11, 2011 and November 25, 2011 when shares fell for 10 straight days, dropping 9.2% (-$2.85) over that span.

A Look Back: In the second quarter, profit rose 3.3% to $30.1 million (48 cents a share) from $29.2 million (46 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 2.5% to $2.19 billion from $2.13 billion.

Analyst Ratings: There are mostly holds on the stock with five of eight analysts surveyed giving that rating.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 9.9% in the fourth quarter of the last fiscal year and 2.2% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 5.5% in the third quarter of the last fiscal year, 6.1% in the fourth quarter of the last fiscal year and 4.4% in the first quarter before increasing again in the second quarter.

Wall St. Revenue Expectations: Analysts are projecting a rise of 1.4% in revenue from the year-earlier quarter to $2.21 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.16 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.17 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 2.2% to $707.8 million while assets rose 1.8% to $1.53 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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