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Dec 31, 2023
Owens & Minor Q4 2023 Earnings Report
Reported strong operating margin improvement and robust full year operating cash flow generation, enabling significant debt reduction.
Key Takeaways
Owens & Minor reported a strong finish to 2023 with top-line growth across both business segments, robust profit growth, and exceptional operating cash flow. The Patient Direct segment outperformed the market, and the Products and Healthcare Services segment displayed meaningful sequential revenue and profit improvements.
Consolidated revenue increased by 4% compared to the fourth quarter of 2022.
Patient Direct revenue grew by 8% compared to the fourth quarter of 2022.
Products & Healthcare Services revenue increased by 3% compared to the fourth quarter of 2022.
Operating income margin expanded by 436 basis points while adjusted operating income margin expanded by 154 basis points.
Forward Guidance
The Company issued its outlook for 2024; summarized below:
Positive Outlook
- Revenue for 2024 to be in a range of $10.5 billion to $10.9 billion
- Adjusted EBITDA for 2024 to be in a range of $550 million to $590 million
- Adjusted EPS for 2024 to be in a range of $1.40 to $1.70
- Gross margin rate of 21.0% to 21.5%
- Adjusted effective tax rate of 27.5% to 28.5%
Challenges Ahead
- The Company’s outlook for 2024 contains assumptions, including current expectations regarding the impact of general economic conditions, including inflation, and the continuation of pressure on pricing and demand in our Products & Healthcare Services segment.
- Interest expense of $141 to $146 million
- Diluted weighted average shares of ~78.5 million
- Capital expenditures of $220 to $240 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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