Owens & Minor (NYSE:OMI) shares got a boost today on first-quarter results that came in ahead of the consensus forecast.
Shares of OMI rose 40.9% at $19.09 apiece in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — fell 0.3%.
The Richmond, Virginia-based company posted losses of $24.4 million in the quarter. That equals 32¢ per share on sales of $2.5 billion for the three months ended March 31, 2023.
Owens & Minor reported a massive bottom-line slide into the red from profits of $39.3 million this time last year. However, the company registered 4.8% sales growth.
Adjusted to exclude one-time items, earnings per share totaled 5¢. That topped Wall Street projections of losses per share of 9¢. Sales came in at more than double what the analysts expected.
Edward A. Pesicka, president & CEO of Owens & Minor, said the company generated enough cash to pay down $117 million in debt this quarter. The company also began reducing working capital and managing costs as part of a realignment plan announced in February.
“As we outlined last quarter, we took the necessary steps to initiate the total company operating model realignment program and improve our overall cost structure. These initiatives are progressing well, and we are on pace to reach our adjusted operating income target of $30 million for the year,” Pesicka said. “Overall, we are encouraged by our results to start the year and continue to expect our performance will be heavily weighted toward the second half of 2023.”
Owens & Minor set its revenue guidance for between $10.2 billion and $10.6 billion in 2023. The company projects adjusted EPS to range between $1.30 and $1.65.