Latest news with #OwensMinor
Yahoo
12-07-2025
- Business
- Yahoo
Why Owens & Minor (OMI) Shares Are Sliding Today
Shares of medical supply and logistics company Owens & Minor (NYSE:OMI) fell 3% in the afternoon session after the U.S. administration announced a sharp escalation in trade tensions by threatening new tariffs on Canada. The wider market sentiment turned negative after the White House announced plans to impose a 35% tariff on Canadian imports, sparking renewed fears of a trade war. This news prompted a sell-off across major U.S. indexes, including the S&P 500 and the Dow Jones Industrial Average, as investors grew concerned about the potential economic impact of escalating protectionist policies. The healthcare sector is especially vulnerable to such tensions due to its deeply integrated supply chains with Canada for pharmaceuticals and medical devices, meaning increased costs and potential disruptions. Additionally, ongoing U.S. policy headwinds aimed at lowering drug prices and specific corporate challenges, like those faced by UnitedHealth Group, further compounded the sector's decline. As a result, the Health Care SPDR ETF (XLV) fell 1.0%, underperforming even as major indices pared some losses. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Owens & Minor? Access our full analysis report here, it's free. Owens & Minor's shares are extremely volatile and have had 44 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. Owens & Minor is down 37.3% since the beginning of the year, and at $8.06 per share, it is trading 51.1% below its 52-week high of $16.48 from July 2024. Investors who bought $1,000 worth of Owens & Minor's shares 5 years ago would now be looking at an investment worth $1,095. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Yahoo
29-06-2025
- Business
- Yahoo
5 Insightful Analyst Questions From Owens & Minor's Q1 Earnings Call
Owens & Minor experienced a challenging start to 2025, as market reaction turned negative following flat revenue and a miss versus Wall Street's top-line expectations. Management attributed the subdued results largely to external pressures, especially tariffs and adverse currency movements, which impacted the Products and Healthcare Services segment. CEO Edward Pesicka highlighted, 'We can no longer absorb these costs,' referencing the significant tariff increases on imported medical products. Meanwhile, the Patient Direct segment posted notable growth, driven by increased investments in sleep therapy and sales resources, but this was not enough to offset broader headwinds. Is now the time to buy OMI? Find out in our full research report (it's free). Revenue: $2.63 billion vs analyst estimates of $2.67 billion (flat year on year, 1.6% miss) Adjusted EPS: $0.23 vs analyst estimates of $0.20 (14.5% beat) Adjusted EBITDA: $121.9 million vs analyst estimates of $116.7 million (4.6% margin, 4.4% beat) The company reconfirmed its revenue guidance for the full year of $11 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $1.73 at the midpoint EBITDA guidance for the full year is $575 million at the midpoint, in line with analyst expectations Operating Margin: 0%, in line with the same quarter last year Market Capitalization: $638.2 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. John Stansel (JPMorgan) asked how customers are responding to tariff-related price increases. CEO Edward Pesicka explained that while the company is working to find alternative products for customers, they must pass on tariff costs due to low margins and cannot sell at a loss. Michael Cherny (Leerink Partners, via Ahmed) requested clarification on the $100–$150 million tariff exposure and its treatment in guidance. Pesicka confirmed this exposure is largely in the Products and Healthcare Services segment and will be passed through via price increases. Kevin Caliendo (UBS) inquired about the impact of Rotech acquisition financing and its effect on interest expense guidance. CFO Jonathan Leon noted that interest costs will be updated once the deal closes, and that current guidance does not yet reflect these changes. Eric Coldwell (Baird) questioned how the timing of tariff implementation and price increases aligns, and what happens if customers reject price hikes. Pesicka stated price increases are timed with inventory turnover and that the company cannot absorb tariffs, so alternatives or loss of sales may result. Eric Coldwell (Baird) also asked whether Rotech's performance still aligns with acquisition expectations. Leon confirmed Rotech's results are in line with the deal model, with anticipated accretion in the second year. Looking ahead, our team will monitor (1) the effectiveness and customer acceptance of tariff-driven price increases, (2) the performance and integration of the Patient Direct segment as new therapies and revenue cycle initiatives scale, and (3) developments regarding the potential sale of the Products and Healthcare Services segment and the finalization of the Rotech acquisition. Execution on these fronts will be critical in shaping Owens & Minor's business trajectory and financial health. Owens & Minor currently trades at $7.96, up from $7.73 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-06-2025
- Business
- Yahoo
Owens & Minor price target raised to $7.50 from $7 at BofA
BofA raised the firm's price target on Owens & Minor to $7.50 from $7 and keeps an Underperform rating on the shares after the company announced that it and Rotech Healthcare have mutually agreed to terminate their pending merger. The news was 'surprising' given the competitive landscape in the durable medical equipment space, says the firm, which did not view the combination of Owens & Minor and Rotech as anti-competitive. However, given the significant amount of time being allocated to this deal, the firm views the decision not to move forward favorably as it will allow the company to focus on its core operations, the analyst added. While the firm views the scrapped deal news positively, it thinks that a broader turnaround will require a 'delicate balance' of reducing costs, improving working capital, and de-levering while investing for growth, BofA says. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on OMI: Disclaimer & DisclosureReport an Issue Owens & Minor price target raised to $10 from $9 at Baird Owens & Minor's Strategic Setbacks and Financial Challenges Justify Sell Rating Owens & Minor rises 16.8% Trump-Xi call focuses on trade, PVH reports Q2 beat: Morning Buzz Owens & Minor rises 17.1%
Yahoo
07-06-2025
- Business
- Yahoo
Owens & Minor and Rotech Healthcare Agree to End Previously Planned Acquisition
Owens & Minor, Inc. (NYSE:OMI) announced that it has mutually agreed with Rotech Healthcare Holdings Inc. to cancel their previously planned acquisition. A medical professional in a hospital wearing protective apparel supplied by the healthcare solutions company. As part of the agreement, Owens & Minor has paid $80 million to Rotech Healthcare. Additionally, the company will redeem $1 billion in notes issued in April 2025, which include a mandatory redemption clause, and will terminate the loan commitments from lenders that were intended to finance the acquisition. Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor, Inc. (NYSE:OMI), made the following statement: 'For many months, our teammates, along with the Rotech team, have worked tirelessly in cooperation with the Federal Trade Commission to close this transaction, and while we believe there would have been ample benefits to patients, payors, and providers by adding Rotech to our Patient Direct business, the path to obtain regulatory clearance for this merger proved unviable in terms of time, expense, and opportunity.' He further stated that the company remains confident in its strategy and will continue focusing on expanding its Patient Direct business while prioritizing balance sheet strength through improved cash flow and debt reduction. He emphasized that the home-based care market is growing and dynamic, and Owens & Minor is well-positioned to support patients with chronic conditions. Pesicka also mentioned ongoing discussions with several interested parties regarding the potential sale of their Products and Healthcare Services business. Meanwhile, the company will continue efforts to strengthen this business and capitalize on its growth opportunities. Owens & Minor, Inc. (NYSE:OMI) is a Fortune 500 global healthcare solutions provider, delivering essential products and services that support care from hospitals to patients' homes. While we acknowledge the potential of OMI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None.
Yahoo
09-05-2025
- Business
- Yahoo
Owens & Minor Inc (OMI) Q1 2025 Earnings Call Highlights: Strategic Growth Amidst Tariff ...
Revenue: $2.6 billion, up just under 1% as reported, and up 2.3% on a same-day basis compared to the prior year. Patient Direct Revenue: $674 million, grew by 6% compared to Q1 2024; 7.3% growth on a same-day basis. Products and Healthcare Services Revenue: $1.96 billion, declined by 0.8% as reported, but grew 0.7% on a same-day basis. Gross Profit: $526 million or 20% of net revenue. Gross Margin: Expanded by 40 basis points in Patient Direct; consolidated gross margin rate down by about 50 basis points. Distribution, Selling and Administrative Expenses: $462 million or 17.6% of revenue, down from $478 million or 18.3% of revenue in Q1 2024. Adjusted Operating Income: $61 million, an improvement of about 7% versus Q1 2024. Interest Expense: Just under $34 million, down $1.7 million compared to Q1 2024. Adjusted Effective Tax Rate: 31.9%, up from 29.2% in Q1 2024. Adjusted Net Income: $18 million or $0.23 per share, up from $15 million or $0.19 per share last year. Adjusted EBITDA: $122 million, up 5% from $116 million in Q1 2024. Warning! GuruFocus has detected 2 Warning Sign with HAE. Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Owens & Minor Inc (NYSE:OMI) reported a 31% increase in operating income for the Patient Direct segment, driven by strategic investments and operational improvements. The company achieved high single-digit revenue growth in sleep supplies and double-digit growth in wound supplies, ostomy, and urology categories. Owens & Minor Inc (NYSE:OMI) successfully opened new state-of-the-art distribution centers in Morgantown, West Virginia, and Sioux Falls, South Dakota, enhancing their distribution network. The company reported a record collection rate in its Byram division, with plans to extend these improvements to the Apria division. Owens & Minor Inc (NYSE:OMI) reaffirmed its guidance for the year, expecting at least 70% of earnings and cash flow to be generated in the second half of 2025. The company faces significant tariff exposure, estimated between $100 million to $150 million, primarily affecting the Products and Healthcare Services segment. Owens & Minor Inc (NYSE:OMI) experienced a decline in gross margin due to rising commodity input costs and adverse foreign currency rates. The potential sale of the Products and Healthcare Services segment creates distractions and uncertainties in day-to-day operations. Interest expenses remain a concern, with the Rotech acquisition financing expected to accrue interest before the deal closes. The company anticipates a challenging cash flow quarter due to increased inventory and strategic initiative costs, impacting working capital. Q: Can you discuss the impact of tariffs on your business and how you are addressing this with your customers? A: Edward Pesicka, President and CEO, explained that the tariff exposure is estimated between $100 million to $150 million, primarily affecting products sourced from China and Thailand. Owens & Minor is working with customers to adjust prices and identify alternative products to mitigate the impact. The company has increased inventory to manage the transition but cannot absorb the full cost of tariffs due to low profit margins. Q: How is foreign exchange volatility affecting your financial outlook for the year? A: Jonathan Leon, CFO, noted that while there was significant volatility in March, particularly in Asian currencies, the situation has stabilized. The company is comfortable with its current guidance, assuming no further significant fluctuations. Q: What is the expected impact of the Rotech acquisition on your financials, and how are you managing the associated debt? A: Jonathan Leon, CFO, stated that the Rotech acquisition is expected to be neutral in the first year and accretive in the second year. The financing is in place, and interest will begin accruing once the deal closes. The company will update guidance upon closing. Q: How are you managing the potential impact of tariffs on your Products and Healthcare Services (P&HS) segment? A: Edward Pesicka, President and CEO, clarified that the tariff exposure is primarily within the P&HS segment. The company is implementing price increases specific to affected products and leveraging its diverse manufacturing footprint to offer alternatives. Q: Can you provide more details on your cash flow expectations for the year, considering recent inventory changes? A: Jonathan Leon, CFO, confirmed that the outlook for cash flow remains unchanged, with expectations for strong free cash flow to be used for debt reduction. The company anticipates improvements in cash flow as the year progresses, despite higher-than-expected costs related to strategic initiatives. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
