What happened
Shares of healthcare services company Owens & Minor, Inc. (OMI 5.53%) 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.
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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.
