Healthy Demand For Home-Based Care Products Propel Healthcare Logistics Firm Owens & Minor's Q4 Performance
Owens & Minor Inc (NYSE OMI) reported fourth-quarter 2023 adjusted EPS of $0.69, up from $0.28 a year ago and beating the consensus of $0.66. Revenues increased 4% year-on-year (Y/Y) to $2.66 billion, in line with the consensus.
Patient Direct revenue of $664 million increased 8% Y/Y from strong growth in several product categories.
Products & Healthcare Services revenue of nearly $2 billion, up 3% compared to the fourth quarter of 2022, with growth in both the Medical Distribution and Global Products divisions.
Owens & Minor’s fourth quarter operating income was $60 million, and adjusted operating income was $111 million, thanks to larger income contributions from the Patient Direct segment.
“Our Patient Direct segment continued to outperform the market, showcasing the ongoing effectiveness of our go-to-market strategies on top of the healthy demand for home-based care. Our Products and Healthcare Services segment displayed meaningful sequential revenue and profit improvements resulting from our intense focus and execution of our strategic initiatives,” said Edward A. Pesicka, President and CEO.
The company generated $112 million of operating cash flow in the fourth quarter, driven by strong working capital improvement and operating results, and reduced total debt by $49 million and net debt by $76 million.
Guidance: Owens & Minor sees fiscal year 2024 revenue of $10.5 billion-$10.9 billion versus the consensus estimate of $10.69 billion.
The company forecasts 2024 adjusted EPS of $1.40-$1.70 versus consensus of $1.57.
Owens & Minor forecasts fiscal year 2024 adjusted EBITDA of $550 million-$590 million.
Price Action: OMI shares are up 4.95% at $22.26 on the last check Tuesday.
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This article Healthy Demand For Home-Based Care Products Propel Healthcare Logistics Firm Owens & Minor's Q4 Performance originally appeared on Benzinga.com
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