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%.