Ownes & Minor (NYSE: OMI) reported Q1 EPS of $0.08, $0.04 better than the analyst estimate of $0.04. Revenue for the quarter came in at $2.12 billion versus the consensus estimate of $2.09 billion.

“I am pleased with the way that our teams performed in a very challenging environment in response to the COVID-19 pandemic. I have seen our values play out in real life as our teams worked with customers, suppliers, and various agencies of state and federal governments to provide creative solutions to these challenges. We recognize our responsibilities and required leadership in supporting the Nation’s response to protect those on the front line. Our distribution, products, and services teams have rallied around our mission to Empower Our Customers to Advance Healthcare,” said Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor.

“The decisive actions we took this quarter enabled us to quickly pivot and leverage the strength of our Americas based PPE manufacturing footprint. While we expect the second quarter to be very challenging due to the significant reduction in elective procedures, we are well positioned to partially offset this impact due to the increased demand for our PPE products.” In addition, Pesicka added, “During the second quarter, we will continue to invest in a disciplined manner to meet the needs of our customers as their demand for our services and products grows throughout the third and fourth quarter as elective procedures ramp back up. While 2020 is expected to continue to be very fluid, with downs and ups, our demonstrated ability to quickly pivot and leverage our strengths to best serve our customers provides us with the confidence to re-confirm our full year adjusted EPS guidance of $0.50 to $0.60.”

GUIDANCE:

Ownes & Minor sees FY2020 EPS of $0.50-$0.60, versus the consensus of $0.54.

Financial Outlook

Key assumptions supporting guidance:

• Elective procedures will not return to normal levels until Q3, negatively impacting revenues in our Global Solutions segment during Q2.
• Hospitals will increase surgical capacity in Q3 and Q4 to partially recover from elective procedures that were postponed during Q2, driving incremental demand in both our Global Solutions and Global Products segments in the second half of the year.
• Global Products production of PPE will continue to run at or near full capacity for the balance of the year to meet market demand and to satisfy federal government stockpiling commitments.
• Additional favorability in commodity pricing for the remainder of the year.
• Continued foreign exchange headwinds assumed for the balance of the year.

Based on the above assumptions, the Company continues to expect adjusted net income for 2020 to be in a range of $0.50 to $0.601 per share, on a constant currency basis, despite being challenged in the 2nd quarter to achieve breakeven. The Company believes that it remains positioned to deliver sustained double-digit earnings growth beyond 2020.

For earnings history and earnings-related data on Ownes & Minor (OMI) click here.