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Why Owens & Minor's Shares Popped 20.1% Today

By Travis Hoium - Aug 8, 2019 at 6:23PM

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A big earnings beat helped this technology supplier today.

What happened 

Shares of healthcare services company Owens & Minor, Inc. (OMI -0.68%) jumped as much as 20.1% in trading Thursday after the company reported second-quarter 2019 results. Shares gave back some of those gains late in the day and ended trading up 11.3% for the day. 

So what

Quarterly revenue rose less than 1% to $2.48 billion but easily topped the $2.43 billion that analysts were expecting. Net loss improved from $182.8 million a year ago to a loss of $10.5 million, or $0.18 per share. On an adjusted basis, the company earned $0.10 per share, which topped the $0.07 that analysts expected. 

Two healthcare professionals in front of a medical supply closet

Image source: Getty Images.

Management said it expects full-year adjusted net income to be $0.60 to $0.70 per share, which is at the top end of the $0.62 that analysts are expecting. 

Now what

Owens & Minor's performance was not only better than expected, it leaves the stock in a solid value range. Shares trade at just 7 times the midpoint of this year's earnings, which is a solid price if the company continues to grow. I worry a bit about the big discrepancy between GAAP results and adjusted results, but if the company can continue to exceed expectations, it could be a big winner for investors. 

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