We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Owens & Minor (OMI) Reaffirms Tepid 2017 Financial Guidance
Read MoreHide Full Article
Owens & Minor Inc. (OMI - Free Report) outlined its new strategic plan and reaffirmed the financial guidance. For fiscal 2017, earnings on an adjusted basis are guided in the range of $1.75 to $1.85 per share. For fiscal 2018, the company expects adjusted earnings in the range of $2.05 to $2.20 per share.
The price performance of the stock has been unfavorable over the last three months. Owens & Minor barely broke even by 0.03% while the Zacks classified Medical Products sub-industry gained almost 10.99%.
Behind the Guidance
Coming back to the news, the guidance range for fiscal 2017 is a tad lower than fiscal 2016 adjusted earnings per share of $2.05. We feel the decline is justified given the challenging environment for healthcare distributors that focus on medical and surgical supplies. Domestically, these firms are facing a high uninsured rate and low utilization trends. As a result, a significant chunk of the customer base is either delaying discretionary services or avoiding services altogether, given concerns about disposable income.
Owens & Minor is a global healthcare services company focused on providing supply chain services to healthcare providers and manufacturers of healthcare products. The company provides logistics services across the spectrum of medical products from disposable medical supplies to devices and implants.
With logistics platforms strategically located in the United States and Europe, Owens & Minor serves markets that account for three quarters of global healthcare spending. Its customers span the healthcare market from independent hospitals to large integrated healthcare networks, as well as group purchasing organizations, healthcare products manufacturers, and the federal government.
Nevertheless, Owens & Minor does not have compelling fundamentals in terms of revenues, which have been multiplying at a CAGR of only 2.3% over the last three years. However, the long-term earnings growth rate of 4.3% instills confidence in the stock.
Zacks Rank & Other Stocks to Consider
Currently, Owens & Minor has a Zacks Rank #3 (Hold).
Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock has an impressive one-year return of 58.7%.
Cogentix Medical posted a positive earnings surprise of 100% in the last reported quarter. Additionally, the company registered a promising one-year return of almost 80.2%.
Penumbra has a long-term expected earnings growth rate of approximately 20%. Also, the stock has an impressive one-year return of almost 23%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Owens & Minor (OMI) Reaffirms Tepid 2017 Financial Guidance
Owens & Minor Inc. (OMI - Free Report) outlined its new strategic plan and reaffirmed the financial guidance. For fiscal 2017, earnings on an adjusted basis are guided in the range of $1.75 to $1.85 per share. For fiscal 2018, the company expects adjusted earnings in the range of $2.05 to $2.20 per share.
The price performance of the stock has been unfavorable over the last three months. Owens & Minor barely broke even by 0.03% while the Zacks classified Medical Products sub-industry gained almost 10.99%.
Behind the Guidance
Coming back to the news, the guidance range for fiscal 2017 is a tad lower than fiscal 2016 adjusted earnings per share of $2.05. We feel the decline is justified given the challenging environment for healthcare distributors that focus on medical and surgical supplies. Domestically, these firms are facing a high uninsured rate and low utilization trends. As a result, a significant chunk of the customer base is either delaying discretionary services or avoiding services altogether, given concerns about disposable income.
Owens & Minor is a global healthcare services company focused on providing supply chain services to healthcare providers and manufacturers of healthcare products. The company provides logistics services across the spectrum of medical products from disposable medical supplies to devices and implants.
With logistics platforms strategically located in the United States and Europe, Owens & Minor serves markets that account for three quarters of global healthcare spending. Its customers span the healthcare market from independent hospitals to large integrated healthcare networks, as well as group purchasing organizations, healthcare products manufacturers, and the federal government.
Nevertheless, Owens & Minor does not have compelling fundamentals in terms of revenues, which have been multiplying at a CAGR of only 2.3% over the last three years. However, the long-term earnings growth rate of 4.3% instills confidence in the stock.
Zacks Rank & Other Stocks to Consider
Currently, Owens & Minor has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical sector include Addus HomeCare Corporation (ADUS - Free Report) , Cogentix Medical, Inc. (CGNT - Free Report) and Penumbra Inc. (PEN - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock has an impressive one-year return of 58.7%.
Cogentix Medical posted a positive earnings surprise of 100% in the last reported quarter. Additionally, the company registered a promising one-year return of almost 80.2%.
Penumbra has a long-term expected earnings growth rate of approximately 20%. Also, the stock has an impressive one-year return of almost 23%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>