Please ensure Javascript is enabled for purposes of website accessibility

Why Owens & Minor Stock Is Skyrocketing Today

By Keith Speights - Updated Feb 24, 2021 at 11:05AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company announced great Q4 results.

What happened

Shares of Owens & Minor (OMI 2.75%) had soared 31.7% as of 10:46 a.m. EST on Wednesday. The big gain came after the medical supply company announced great fourth-quarter results before the market open.

So what

Owens & Minor reported fourth-quarter revenue of $2.36 billion, up nearly 8% year over year. This result topped the average analyst estimate of $2.16 billion.

The company's bottom-line performance was even more impressive, with adjusted earnings per share in the fourth quarter of $1.14, up from $0.23 in the prior-year period. The Wall Street consensus was for adjusted earnings of $0.85 per share.

Doctor wearing gloves, a face mask, and protective glasses

Image source: Getty Images.

Strong demand for personal protective equipment (PPE) was the primary driver behind Owens & Minor's growth. The company said that it has delivered over 12 billion PPE units to healthcare workers since January 2020.

One great quarter isn't necessarily a reason to buy the healthcare stock. But Owens & Minor expects the demand for PPE will continue throughout 2021 as well.

Now what

The company projects that its adjusted earnings will increase between 33% and 55% year over year in 2021. It anticipates higher PPE production capacity and greater manufacturing efficiencies. It also thinks that the volume of elective procedures seen in the fourth quarter of 2020 will continue in the first half of this year. Overall, it looks like Owens & Minor's momentum won't slow down anytime soon.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Owens & Minor, Inc. Stock Quote
Owens & Minor, Inc.
$35.44 (2.75%) $0.95

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.