Back to top

Image: Bigstock

Owens & Minor (OMI) to Report Q4 Earnings: What's in Store?

Read MoreHide Full Article

Owens & Minor, Inc. (OMI - Free Report) is scheduled to report fourth-quarter and full-year 2020 results on Feb 24, before market open.

In the last-reported quarter, the company’s earnings of 81 cents beat the Zacks Consensus Estimate by 15.71%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average beat being 82.52%.

Let’s see how things have shaped up prior to this announcement.

Factors to Note

Global Products Business

Owens & Minor, during its November update, confirmed the continued robust demand for its personal protective equipment (“PPE”), given the unrelenting spread of the pandemic. We expect the strength in demand for PPEs to have continued through the rest of the fourth quarter due to increased compliance to safety protocols amid the resurgence of COVID-19. This is likely to have significantly boosted the top line.

Earlier, the company noted about being on track to ramp up the production of N95 and surgical masks by installing new N95 production lines in North Carolina and Texas facilities. This is likely to have contributed to the top line in the fourth quarter.

Global Solutions Business

Owens & Minor has been witnessing rebound in demand for elective procedures in the past few months. This improvement mainly started to take place following a dismal first-half 2020 performance within medical distribution.

Owens & Minor, Inc. Price and EPS Surprise

Owens & Minor, Inc. Price and EPS Surprise

Owens & Minor, Inc. price-eps-surprise | Owens & Minor, Inc. Quote

The company undertook a few measures like expanding its low unit of measure warehouse infrastructure system, improving inventory planning process and algorithms and enhancing data management services offering through myOM and QSight. It has also improved B2B and B2C offerings in home healthcare business. We expect these developments to get reflected in the fourth-quarter results.

The Estimate Picture

For fourth-quarter 2020, the Zacks Consensus Estimate for total revenues of $2.17 billion implies a decline of 1.1% from the prior-year reported figure.

The consensus estimate for earnings per share is pegged at 86 cents, implying an improvement of 258.3% from the prior-year reported figure.

What Our Model Suggests

Our proven model does not conclusively predict an earnings beat for Owens & Minor this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the chances of an earnings beat. But this is not the case here as you will see below.

Earnings ESP: Owens & Minor has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks Worth a Look

Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.

DENTSPLY SIRONA (XRAY - Free Report) has an Earnings ESP of +2.09% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Option Care Health, Inc. (OPCH - Free Report) has an Earnings ESP of +46.94% and a Zacks Rank of 2.

The Cooper Companies, Inc. (COO - Free Report) has an Earnings ESP of +1.68% and a Zacks Rank of 3.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

Published in