Owens & Minor
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Owens & Minor met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share grew.
Gross margins shrank, operating margins expanded, and net margins were steady.
Owens & Minor booked revenue of $2.18 billion. The nine analysts polled by S&P Capital IQ predicted a top line of $2.16 billion. Sales were 6.1% higher than the prior-year quarter's $2.06 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.53. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.51 per share on the same basis. GAAP EPS of $0.38 for Q3 were 12% higher than the prior-year quarter's $0.34 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 9.7%, 130 basis points worse than the prior-year quarter. Operating margin was 2.5%, 40 basis points better than the prior-year quarter. Net margin was 1.1%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $2.19 billion. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $8.62 billion. The average EPS estimate is $1.91.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 123 members rating the stock outperform and nine members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Owens & Minor a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Owens & Minor is hold, with an average price target of $29.13.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.