Ownes & Minor (NYSE: OMI) reported Q3 EPS of $0.81, $0.10 better than the analyst estimate of $0.71. Revenue for the quarter came in at $2.19 billion versus the consensus estimate of $2.08 billion.

• Increases full year adjusted EPS guidance to $1.90 to $2.00*
• Reconfirms expectation of double digit adjusted EPS growth in 2021

3rd Quarter 2020 Company Highlights

• 250%+ increase in adjusted net income per share compared to the third quarter of 2019
• 6th consecutive quarter of year-over-year gross margin expansion
• 240 basis point adjusted operating margin expansion versus prior year
• $118 million of operating cash flow generated in the quarter from increased earnings and working capital improvements
• Reduced total debt by:
  • $70 million in the quarter
  • $231 million year-to-date
  • $402 million in the last 6 quarters
• Global Solutions segment grew revenue $317 million sequentially and returned to profitability
• Launched an upsized $200 million equity offering for additional 9.7 million shares
• Reached a milestone in the COVID-19 fight with nearly 11 billion units of PPE delivered of which approximately 4 billion units were produced with materials manufactured in our American factories or Owens & Minor owned facilities, since January 2020
• Continued to invest in infrastructure, services, and technology
• Strong performance in Q3 has provided a line of sight to allow Owens & Minor to update financial outlook as described below

“I am delighted to report another strong quarter, driven by our exceptional operating performance supported by our dedicated teammates. It is our ability to support the complete value chain with our Americas owned and operated manufacturing facilities combined with our broad external supplier base and integrated with our robust distribution network, which allows us to operate at the highest levels of performance to best serve our customers. I am immensely proud of our accomplishments over the past several quarters, but we recognize that we’re not done yet.” said Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor.

“Our financial profile is as strong as it’s been in quite some time, and our focused execution has allowed us to invest in technology and infrastructure while deleveraging the balance sheet. Moreover, the success of our efforts gives us confidence to make additional investments to enhance our customers’ experience and drive further EPS growth. Our strategic capabilities and execution excellence boost our confidence in continued strong performance in 2020, and on-going momentum entering 2021.”

GUIDANCE:

Ownes & Minor sees FY2020 EPS of $1.90-$2.00, versus the consensus of $1.80.

Subject to the key assumptions below, the Company expects adjusted net income for 2020 to be in a range of $1.90 to $2.00* per share inclusive of the October 2020 equity offering share count. The Company also continues to believe that it remains positioned to deliver double-digit earnings growth in 2021.

Key assumptions supporting the Company’s 2020 adjusted net income per share guidance:

• Impact of dilution on existing shares to the extent of $0.05 per share
• Increase in PPE production capacity remains on schedule for the balance of 2020
• Elective procedures in Q4 remain flat to Q3 levels
• Foreign exchange expected to contribute $0.06 of benefit for the full year

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