Why Owens & Minor's Shares Popped 20.1% Today
What happened
Shares of healthcare services company Owens & Minor, Inc. (NYSE: OMI) jumped as much as 20.1% in trading Thursday after the company reported second-quarter 2019 results. Shares gave back some of those gains late in the day and ended trading up 11.3% for the day.
So what
Quarterly revenue rose less than 1% to $2.48 billion but easily topped the $2.43 billion that analysts were expecting. Net loss improved from $182.8 million a year ago to a loss of $10.5 million, or $0.18 per share. On an adjusted basis, the company earned $0.10 per share, which topped the $0.07 that analysts expected.
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Management said it expects full-year adjusted net income to be $0.60 to $0.70 per share, which is at the top end of the $0.62 that analysts are expecting.
Now what
Owens & Minor's performance was not only better than expected, it leaves the stock in a solid value range. Shares trade at just 7 times the midpoint of this year's earnings, which is a solid price if the company continues to grow. I worry a bit about the big discrepancy between GAAP results and adjusted results, but if the company can continue to exceed expectations, it could be a big winner for investors.
Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
This article was originally published on Fool.com
