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Jun 30, 2020
Owens & Minor Q2 2020 Earnings Report
Reported improved results for the 3rd consecutive quarter and doubled full year adjusted EPS guidance.
Key Takeaways
Owens & Minor reported improved financial performance in Q2 2020, driven by increased productivity, manufacturing output related to PPE, and capitalizing on an earlier than expected increase in elective procedures. The company doubled its full-year adjusted EPS guidance and reconfirmed its expectation of double-digit adjusted EPS growth in 2021.
Doubled adjusted net income per share compared to the second quarter of 2019.
Delivered adjusted operating margin expansion of 68 basis points compared to prior year.
Generated $57 million of operating cash flow in the second quarter from increased earnings and working capital improvements.
Reduced total debt by $137 million, and set aside an additional $79 million in cash for future debt reduction.
Owens & Minor
Owens & Minor
Forward Guidance
The Company expects adjusted net income for 2020 to be in a range of $1.00 to $1.20 per share and continues to believe that it remains positioned to deliver double-digit earnings growth in 2021.
Positive Outlook
- Increase in PPE production capacity remains on schedule for the balance of 2020.
- Elective procedures are in line with June 2020 levels for the remainder of the year.
- Foreign exchange expected to have minimal impact for the full year.