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Jun 30, 2024
Owens & Minor Q2 2024 Earnings Report
Reported solid growth in both segments and reduced debt through operating cash flow.
Key Takeaways
Owens & Minor reported a 4% increase in consolidated revenue, driven by growth in both the Products & Healthcare Services and Patient Direct segments. The company generated $116 million in operating cash flow, which enabled a $71 million debt reduction. However, the company reported a net loss of $(32) million, or $(0.42) per share.
Consolidated revenue increased by 4% year-over-year to $2.7 billion.
Net loss was $(32) million, or $(0.42) per share.
Adjusted EBITDA grew by 12% year-over-year to $127 million.
Adjusted earnings per share doubled year-over-year from $0.18 to $0.36.
Owens & Minor
Owens & Minor
Forward Guidance
The company reaffirmed its financial guidance for 2024.
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
- Guidance contains assumptions, including current expectations regarding the impact of general economic conditions, including inflation
- Guidance includes 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