RICHMOND, Va. - Owens & Minor, Inc. (NYSE: NYSE:OMI), a global healthcare solutions company, today announced its financial results for the first quarter ended March 31, 2024.
The company reported a modest beat on earnings per share (EPS) with $0.19, marginally exceeding the analyst consensus of $0.18. Revenue met expectations, coming in at $2.61 billion, aligned with the consensus estimate of $2.61 billion.
The company's first-quarter performance reflected a 4% year-over-year (YoY) increase in consolidated revenue, rising from $2.52 billion in the first quarter of the previous year. This growth was supported by a 5% increase in Patient Direct revenue to $638 million and a 3% rise in Products & Healthcare Services (NASDAQ:HCSG) revenue to nearly $2 billion compared to the same period last year. Despite a GAAP net loss of -$0.29 per share, the adjusted EPS of $0.19 marked a substantial improvement from the $0.05 reported in the first quarter of 2023, nearly quadrupling on a year-over-year basis.
Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor, commented on the results: "Our solid performance in the first quarter was in line with our expectations, as we delivered top-line growth in both segments, adjusted operating margin expansion, and improved year-over-year profitability." He also highlighted the company's strategic investments previewed at the 2023 Investor Day, which are progressing ahead of plan.
For the fiscal year 2024, Owens & Minor provided guidance with expected revenue to be in the range of $10.5 billion to $10.9 billion and adjusted EPS to be between $1.40 and $1.70. This guidance places the midpoint of the EPS range at $1.55, slightly below the analyst consensus of $1.57. The revenue guidance's midpoint is $10.7 billion, marginally above the consensus of $10.66 billion.
The company's outlook for 2024 includes assumptions about the impact of general economic conditions, including inflation, and the continuation of pressure on pricing and demand in its Products & Healthcare Services segment. Key assumptions supporting the guidance include a gross margin rate of 21.0% to 21.5%, interest expense of $141 to $146 million, an adjusted effective tax rate of 27.5% to 28.5%, and capital expenditures of $220 to $240 million.
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