Shares in Owens & Minor (NYSE:OMI) fell today after the medical device maker missed earnings per share expectations on Wall Street with its fourth quarter and full year 2018 earnings results.
The Richmond, Va.-based company posted losses of approximately $261.8 million, or $4.37 per share, on sales of approximately $2.54 billion for the three months ended December 31, seeing a massive swing into the red on the bottom line while sales grew 6.4% compared with the same period during the previous year.
After adjusting to exclude one-time items, earnings per share were 9¢, behind the 14¢ consensus on Wall Street where analysts expected to see sales of $2.51 billion, which the company topped.
For the full year, Owens & Minor posted losses of $437 million, or $7.28 per share, on sales of approximately $9.84 billion, seeing losses grow 500% while sales grew 5.6% compared with the same period during the previous year.
Adjusted to exclude one-time items, earnings per share were $1.15, just behind the Wall Street consensus of $1.21, where analysts expected to see sales of approximately $9.76 billion, which the company topped.
“2018 was a year of change for Owens & Minor, and, although we faced challenges, we achieved our expectations for the fourth quarter adjusted results, excluding costs associated with the exit of our former chief executive officer. We are encouraged by the opportunities we see in the future and are aggressively addressing challenges in our distribution business. We have made progress in returning our distribution and logistics services to the Owens & Minor standard, but we still have work to do in 2019. We are focused on selling more proprietary and preferred vendor products to our extensive healthcare customer base, as we work to win and retain customers. In combination with positive momentum from Halyard and Byram Healthcare and investments that will support our future efforts, we believe we have the right tools, the right team, and the right strategy to realize a bright, long-term future,” board chair, interim prez & CEO Robert Sledd said in an SEC filing.
Owens & Minor released guidance for 2019, expecting to see adjusted net income per share between 60¢ and 75¢.
“2019 is about laying the foundation for a much more profitable future, and I am confident that the company is on the right track. Our guidance encompasses the increased interest expense from the amended credit agreement, thoughtful investments for our future, and deleveraging our balance sheet,” Sledd said in a prepared statement.
Shares in Owens & Minor have dropped approximately 13.7% so far today, at $6.85 as of 2:23 p.m. EST.
Last month, Owens & Minor said it inked a five-year distribution deal with Scripps Health.
