Owens & Minor (NYSE:OMI) shares are on the rise today on first-quarter results that beat the consensus forecast.
The Richmond, Virginia-based company posted profits of $29.3 million, or 52¢ per share, on sales of $2.4 billion for the three months ended March 31, 2022, for a 57.9% bottom-line slide on sales growth of 3.4%.
Adjusted to exclude one-time items, earnings per share were 96¢, 14¢ ahead of Wall Street, where analysts were looking for sales of $2.3 billion.
“The first quarter of 2022 marked an important milestone – we completed the largest acquisition in the company’s history. With the acquisition of Apria, we have strengthened our position in the higher-growth direct-to-patient home market, enhancing our ability to serve patients through the hospital and into the home. I am excited to welcome the Apria team to Owens & Minor,” Owens & Minor President and CEO Edward A. Pesicka said in a news release. “I am also very pleased to report another strong quarter, as we saw the momentum from the record-setting 2021 carry into the start of the year, largely as we had expected.
“The team has done a great job executing our strategy and managing through a number of macro-economic headwinds, including inflation, over the last several quarters. We will continue to use the Owens & Minor business system and our differentiated model to minimize the impact of these headwinds, deliver another strong year, and remain on track to achieve our long-term objectives.”
Owens & Minor said it expects to log adjusted EPS of between $3.05 and $3.55 for the full year, with current-year accretion from the Apria acquisition of 5¢. The company set its sales guidance for between $9.9 billion and $10.3 billion, with a contribution in excess of $0.9 billion from Apria.
The company noted that its 2022 projections reflect the expectation that full-year elective procedure totals will be slightly below pre-pandemic levels, while personal protective equipment volumes are also expected to ease throughout the year.
OMI shares were up 6.3% at $38.42 per share in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down 0.3%.
