Owens & Minor Inc.

Owens & Minor, Inc. (OMI - Snapshot Report) recently extended its streak of earnings surprises to 5. Estimates are up following solid growth in revenues and earnings.

Company Description

Owens & Minor, Inc. is one of the nation's largest distributors of national name brand medical and surgical supplies. With distribution centers located throughout the United States, the company serves hospitals, integrated healthcare systems and group purchasing organizations.

In addition to a diverse product offering, Owens & Minor offers innovative services in supply chain management, logistics and technology, helping customers control healthcare costs and improve inventory management.

Fifth Consecutive Surprise

On Feb 5 Owens & Minor reported its fifth consecutive earnings surprise. The company earned $27.4 million, 66 cents per share, up from $22.9 million one year ago. The 20% bump in earnings beat Wall Street expectations by 5 cents per share.

Revenues also grew steadily to $1.96 billion, up 14% from $1.72 billion in the fourth quarter of 2007.

As for full-year results, Owens & Minor generated $7.24 billion in revenue, up 8% from $6.69 billion in 2007. Earnings were up an impressive 42% to $101.3 million, up from $71.4 million.

Acquisition Completed

Owens & Minor acquired Burrows and the transition is on schedule. Some of the distributor's assets and liabilities were purchased with nearly $17 million in cash and Owens & Minor took on just over $56 million of the company's debt.

Estimates Climbing

Following the latest earnings release analysts are upwardly revising their estimates. The full-year consensus estimate for 2009 is $2.63, up slightly, and projects a growth rate of 8%. However, the estimates for 2010 are now averaging $2.96, up from $2.88, a 13% increase.

Read the full analyst report on OMI