Owens & Minor (NYSE:OMI) posted fourth-quarter results today that beat the earnings consensus on Wall Street but missed on earnings.
The Mechanicsville, Va.-based company reported losses of -$39 million, or -65¢ per share, on sales of $2.2 million for the three months ended Dec. 31, 2019, for a bottom-line sales loss of -10% compared with Q4 2018.
Adjusted to exclude one-time items, earnings per share were 24¢, 1¢ ahead of The Street, where analysts were looking for sales of $2.5 billion.
“I am very pleased that we were able to sustain sequential improvement in adjusted operating income and adjusted earnings per share while also continuing to generate positive cash flow and reduce debt. Looking back at 2019, I am proud that we changed our culture, significantly improved customer service, built a great leadership team and drove operating efficiencies, enabling us to establish a strong foundation for the future,” president and CEO Edward Pesicka said in a news release.
“In addition to the strong foundation we have built in 2019, we’ve already taken action in 2020 to provide financial flexibility through the pending sale of Movianto and our improved debt profile. This further enables us to reinvest and focus on our core businesses – distribution, products and services. We believe these investments will continue to drive long-term profitable growth generating consistent annual double-digit earnings growth beyond 2020.”
The company said the lost income was associated with the pending divestiture of Movianto, recent financing activity and customer non-renewals in the first three quarters of the fiscal year 2019. Owens & Minor expected to log revenue in the range of 50¢ to 60¢ per share for the fiscal year 2020.
Shares in OMI were down -20.33% to $5.37 apiece in mid-morning trading.
