Shares of Owens & Minor (NYSE:OMI) were soaring 55.2% higher as of 11:38 a.m. EDT on Thursday. The huge jump came after the healthcare solutions company raised its full-year 2020 earnings guidance from a range of $1 to $1.20 per share to a range of $1.75 to $1.90.
If you're looking for a big catalyst for a healthcare stock (or any kind of stock, for that matter), a significant increase in its earnings outlook is sure to do the trick. And that's exactly what Owens & Minor did today by announcing projected 2020 adjusted earnings that were 66% higher at the midpoint than its previous guidance.
The main reason for Owens & Minor's bullishness can be summed up in just three letters: PPE. The company said that its deployment of personal protective equipment in the U.S. is ahead of schedule. It also underscored the sustained high demand for PPE resulting from the coronavirus pandemic.
In addition, the healthcare solutions company said that it looks for "better-than-expected manufacturing output and operating efficiencies" stemming from productivity gains. It also thinks that elective-procedure volumes throughout much of the U.S. will be a little higher than previously expected.
Can the good times keep rolling into next year? Owens & Minor believes they can. The company stated that it expects investments and adjustments made in 2020 to keep the momentum going in 2021 as well.