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Sep 30, 2020
Owens & Minor Q3 2020 Earnings Report
Reported strong financial results driven by exceptional operating performance and dedicated teammates.
Key Takeaways
Owens & Minor reported a strong third quarter, driven by exceptional operating performance. The company's financial profile is strong, allowing investments in technology and infrastructure while deleveraging the balance sheet. They increased full year adjusted EPS guidance and reconfirmed expectation of double digit adjusted EPS growth in 2021.
Adjusted net income per share increased over 250% compared to Q3 2019.
Gross margin expanded year-over-year for the 6th consecutive quarter.
Adjusted operating margin expanded 240 basis points versus prior year.
Operating cash flow of $118 million was generated from increased earnings and working capital improvements.
Forward Guidance
The Company expects adjusted net income for 2020 to be in a range of $1.90 to $2.00 per share inclusive of the October 2020 equity offering share count. The Company also continues to believe that it remains positioned to deliver double-digit earnings growth in 2021.
Positive Outlook
- Impact of dilution on existing shares to the extent of $0.05 per share
- Increase in PPE production capacity remains on schedule for the balance of 2020
- Elective procedures in Q4 remain flat to Q3 levels
- Foreign exchange expected to contribute $0.06 of benefit for the full year
Historical Earnings Impact
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Avg. Return Before/After Earnings
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