Shares of medical and surgical gear manufacturer Owens & Minor (OMI -0.40%) surged in Wednesday trading, rising 15.2% through 11:35 a.m. EDT after the company posted a big Q3 earnings beat this morning.
Instead of the $2.46 billion in sales and $0.55 per share in pro forma profit that Wall Street had expected, Owens & Minor reported $2.5 billion in sales and a $0.74-per-share profit.
The details: Owens & Minor grew its sales 14% year over year and "continued on our path to a record setting year," said CEO Edward Pesicka. He made this prediction despite acknowledging an earnings decline of 9% year over year pro forma and 24% when calculated according to generally accepted accounting principles (GAAP).
In the midst of a continuing pandemic, the CEO boasted of Owens & Minor's "advantage of having Americas owned and operated manufacturing facilities" that help it to maintain supplies of "medical grade [PPE] products with minimal impact from global supply chain disruptions."
Looking ahead through the end of the year, management was able to narrow its previous forecast for pro forma earnings to a range of $3.90 to $4.10 per share. On the one hand, this is bad news because it eliminates the possibility Owens & Minor will max out its previous hope of earning as much as $4.25 per share. On the other hand, the entirety of the new guidance range sits above the $3.89-per-share profit that Wall Street had forecast.
Or in other words: After crushing earnings in Q3, Owens & Minor is ready to do it again in Q4.