OMI stock exploded higher in early trade on July 21, 2020, after the company reported preliminary numbers.

Owens & Minor, Inc. (NYSE-OMI) today announced preliminary financial results for the second quarter of 2020 that are expected to benefit from improved productivity and increased manufacturing output in response to unprecedented demand for personal protective equipment, an earlier than expected increase in elective procedures across much of the country, favorable product mix, and operating efficiencies.

Owens & Minor expects to report GAAP net income (loss) per share from continuing operations for the second quarter of 2020 to be in a range of ($0.02) to $0.00 and adjusted net income per share (non-GAAP) to be in a range of $0.18 to $0.20, the consensus estimate was ($0.03). A reconciliation of the difference between the non-GAAP financial measure and the most directly comparable GAAP financial measure is included in the table below.

Additionally, the Company is revising its outlook for full-year adjusted net income from $0.50 to $0.60 per share on a constant currency basis to adjusted net income of $1.00 to $1.20 per share. The Company expects that foreign currency will have a minimal impact on adjusted net income per share for the full year.

Owens & Minor plans to release financial results for the second quarter of 2020 on Tuesday, August 4, 2020, after the market closes on the New York Stock Exchange.

Baird analyst Eric Coldwell upgraded Owens & Minor to Outperform from Neutral with a price target of $14, up from $8.

BofA analyst Michael Cherny upgraded Owens & Minor to Buy from Neutral with a price target of $12, up from $8. Strong profit performance previewed in 2Q reflects not only pull-through from what now should be a sustained PPE benefit but also the contribution from the company’s operational initiatives, Cherny tells investors. While he still sees competitive pressures limiting the traditional hospital supply distribution business’ margin potential, he thinks O&M should be able to offset those dynamics through its products segment, the analyst added.

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