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Why Owens & Minor Stock Is Tumbling Today

By Keith Speights – Aug 3, 2021 at 11:32AM

Key Points

  • Owens & Minor beat analysts' revenue and earnings estimates in Q2.
  • However, the company didn't increase its guidance for 2021 or 2022.
  • Considerable uncertainty remains about how the COVID-19 pandemic will impact Owens & Minor's business going forward.

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Investors weren't pleased after the company's second-quarter update.

What happened

Shares of Owens & Minor (OMI 3.09%) were tumbling 9.5% lower as of 11:24 a.m. EDT on Tuesday. The decline came after the healthcare solutions company provided its second-quarter update.

So what

Owens & Minor reported Q2 revenue of $2.5 billion, a 38% year-over-year increase. This result came in slightly higher than the consensus estimate of $2.47 billion. It also delivered record earnings, with adjusted earnings per share of $1.06 well above the average analysts' estimate of $0.97.

A person wearing a face mask, gloves, and a surgical hair cap.

Image source: Getty Images.

So why did the healthcare stock fall after beating Wall Street's top- and bottom-line estimates? Some investors perhaps hoped for a guidance boost but didn't get it. Owens & Minor reaffirmed its previous full-year 2021 guidance of adjusted earnings between $3.75 and $4.25 per share. The company also maintained its previously announced outlook for 2022.

Now what

The main thing to watch with Owens & Minor going forward is the COVID-19 pandemic. The company's personal protective equipment sales could rise with increased concerns about the delta variant. However, Owens & Minor's other businesses could be negatively impacted if COVID-19 causes disruption for healthcare providers.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Stocks Mentioned

Owens & Minor Stock Quote
Owens & Minor
OMI
$21.03 (3.09%) $0.63

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