Owens & Minor (NYSE:OMI) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

Owens & Minor, Inc. (NYSE:OMI) is scheduled to report Q3 earnings results on November 2, 2020.

The company is expected to report earnings of $0.71/share on revenue of $2.082 billion. The consensus earnings per share (EPS) of $0.71/share is based on a poll of 6 analysts and represents a growth in eps of 254.9% over the same quarter last year, when the company reported earnings of $0.20/share.

The revenue forecast of $2.082 billion based on a poll of 6 analysts implies a year-over-year (YoY) decline in revenue of −13.2%. Last year the company reported $2.399 billion in revenue for the quarter.

Expected to report EPS growth of 254.9% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $2,081.83 $2,399.02 −13.2%
EPS $0.71 $0.20 254.9%

Earnings Call Trends

Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, and missed expectations 3 quarters.

What are your expectations from Owens & Minor, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.20 $0.20 2.1% Beat
Q1, 2020 $0.04 $0.04 6.1% Beat
Q4, 2019 $0.23 $0.24 4.7% Beat
Q3, 2019 $0.19 $0.20 5.0% Beat
Q2, 2019 $0.07 $0.10 37.6% Beat
Q1, 2019 $0.05 $0.02 −62.9% Missed
Q4, 2018 $0.14 $0.09 −35.0% Missed
Q3, 2018 $0.33 $0.32 −3.1% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −16.2%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 4, 2020 $17.01 $14.25 −16.2% Decline
May 6, 2020 $7.47 $7 −6.3% Decline
March 4, 2020 $6.74 $5.93 −12.0% Decline
November 6, 2019 $6.45 $6.97 8.1% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.31, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.31 implies a 0.0% chance of earnings manipulation.

Fundamentals And Technical Analysis

Owens & Minor, Inc. is currently trading at $25.34/share, down −0.7% for the day. The company is trading at approximately 91.3% of its 52-week high of $27.75/share. The company’s stock price is up 77.8% since the last earnings report and down −1.2% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 61.76 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:OMI Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −174.47 and a forward P/E multiple of 16.49.

Owens & Minor, Inc.’s current share price also implies a price-to-book (P/B) multiple of 4.71. The following table summarizes some other key fundamental ratios:

Data as of October 27, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $25.34
P/E Ratio −174.5x
P/E Ratio (Fwd) 16.5x
PEG Ratio −2.8
Total Debt / Total Capital 45.2%
Levered Free Cash Flow $257.4 million
EV / EBITDA 17.1x

Finbox

Owens & Minor, Inc. is a small-cap stock with a market capitalization of $1.863 billion and a total enterprise value of $3.311 billion. The company operates in the Healthcare sector and the Healthcare Providers & Services industry.

Owens & Minor, Inc., together with its subsidiaries, operates as a healthcare solutions company in the United States and internationally. It operates through two segments, Global Solutions and Global Products. The Global Solutions segment offers a portfolio of products and services to healthcare providers and manufacturers. Its portfolio of medical and surgical supplies includes branded products and its proprietary products. This segment also offers services to healthcare providers, which include supplier management, analytics, inventory management, and clinical supply management; and various programs to provide logistics and marketing solutions to its suppliers. The Global Products segment manufactures and sources medical surgical products for the prevention of healthcare-associated infections across the acute and alternate site channels. This segments products portfolio includes sterilization wraps, surgical drapes and gowns, facial protection products, protective apparel, medical exam gloves, custom and minor procedure kits, and other medical products. The company provides its products and services to multi-facility networks of healthcare providers, independent hospitals, surgery centers, physicians’ practices, and networks of hospitals directly, as well as indirectly through third-party distributors. Owens & Minor, Inc. was founded in 1882 and is headquartered in Richmond, Virginia.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

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