By Denny Jacob
Owens & Minor experienced a significant boost in its share price, with a 23% increase to $19.09, following impressive revenue growth in its most recent quarter. Despite a 2.3% decline over the year, the stock is on track for its highest close in nearly three months.
In the third quarter ended September 30, the healthcare solutions company reported a loss of $6.4 million, or 8 cents per share, compared to net income of $12.5 million, or 16 cents per share, in the same period last year. However, adjusted earnings came in at 44 cents per share, surpassing analysts’ estimates of 38 cents per share.
Revenue for Owens & Minor rose to $2.59 billion, surpassing expectations of $2.58 billion, with strong growth in its patient direct business leading the way with a 9.1% increase compared to the previous year. Products & healthcare services revenue also saw a modest uptick of 2% from the prior-year period.
Looking ahead, Owens & Minor has revised its outlook for 2023. The company now forecasts revenue between $10.3 billion and $10.4 billion, as well as adjusted earnings per share in the range of $1.30 to $1.40. This is a slight adjustment from its previous forecast of revenue between $10.2 billion and $10.5 billion, and adjusted earnings per share ranging from $1.30 to $1.55.
“While the volatility of demand and pricing for PPE appears to be diminishing, we remain cautious on the long-term trajectory,” commented Chief Executive Edward Pesicka.