What happened
Shares of Owens & Minor (OMI -2.51%) 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.
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.
