Owens & Minor (NYSE:OMI) posted first-quarter results that were in line with the earnings consensus on Wall Street and beat on revenue.
The Mechanicsville, Va.-based company reported losses of $11.3 million, or -15¢ per share, on sales of $2.1 billion for the three months ended March 31, for a sales loss of -9.7% compared with Q1 2019.
Adjusted to exclude one-time items, earnings per share were 4¢, in line with The Street, where analysts were looking for sales of $1.72 billion.
“I am pleased with the way that our teams performed in a very challenging environment in response to the COVID-19 pandemic. I have seen our values play out in real life as our teams worked with customers, suppliers, and various agencies of state and federal governments to provide creative solutions to these challenges,” president and CEO Edward Pesicka said in a news release. “We recognize our responsibilities and required leadership in supporting the Nation’s response to protect those on the front line. Our distribution, products, and services teams have rallied around our mission to Empower Our Customers to Advance Healthcare.”
“The decisive actions we took this quarter enabled us to quickly pivot and leverage the strength of our Americas based PPE manufacturing footprint. While we expect the second quarter to be very challenging due to the significant reduction in elective procedures, we are well-positioned to partially offset this impact due to the increased demand for our PPE products,” Pesicka said. “During the second quarter, we will continue to invest in a disciplined manner to meet the needs of our customers as their demand for our services and products grows throughout the third and fourth quarter as elective procedures ramp back up. While 2020 is expected to continue to be very fluid, with downs and ups, our demonstrated ability to quickly pivot and leverage our strengths to best serve our customers provides us with the confidence to re-confirm our full-year adjusted EPS guidance of $0.50 to $0.60.”
Owens & Minor said that the change in revenue was driven by lower sales caused by customer non-renewals that occurred in early 2019 and reduced surgical procedures due to COVID-19. The changes were offset by increased sales of personal protective equipment and home healthcare business revenue growth.
Shares in OMI were down -1.47% to $7.36 apiece in mid-morning trading. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up 0.2%.