Owens & Minor's Q3 Earnings Surpass Expectations, Revenue Rises 5% Year-Over-Year

RICHMOND, Va. - Owens & Minor, Inc. (NYSE:OMI) reported a 5% year-over-year increase in revenue, driven by strong demand in its Patient Direct and Medical Distribution segments, exceeding analysts' expectations for third-quarter earnings. Following the announcement on Monday, OMI shares rose by 0.75%.

The healthcare solutions company reported adjusted earnings of $0.42 per share, surpassing the analyst consensus of $0.41. Revenue for the quarter reached $2.72 billion, exceeding forecasts of $2.68 billion and representing a 5% increase compared to the same period last year.

Owens & Minor's Patient Direct segment revenue increased by 6% year-over-year to $687 million, thanks to strong performance in diabetes and sleep products. Revenue from the Products & Healthcare Services segment also rose by 5% to $2.0 billion, primarily due to robust same-store sales in Medical Distribution.

Edward A. Pesicka, President and CEO of Owens & Minor, stated, "Our third-quarter results demonstrate our ability to fulfill our commitments to both short-term and strategic initiatives."

The company reported a GAAP net loss of $13 million, or -$0.17 per share, for the quarter. Adjusted EBITDA increased by 5% year-over-year to $142 million.

Owens & Minor reduced its total debt by $198 million in the third quarter and fully retired its senior notes due in 2024.

The company narrowed its guidance for the full year 2024, now expecting adjusted earnings per share between $1.45 and $1.55, compared to the analyst consensus of $1.59. Revenue is projected to be between $10.6 billion and $10.8 billion.