What happened
Shares of Owens & Minor (OMI -2.26%) 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.
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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.
