Owens & Minor, Inc.
OMI
is scheduled to report first-quarter 2021 results on May 5, before market open.
In the last-reported quarter, the company’s earnings of $1.14 beat the Zacks Consensus Estimate by 32.56%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average beat being 88.38%.
Let’s see how things have shaped up prior to this announcement.
Factors to Note
Global Products Business
Owens & Minor, during its February update, announced the installation of new N95 production lines in its U.S.-based manufacturing facilities. Further, it added non-woven fabric manufacturing in Lexington, NC facility. It also continued to expand its isolation and surgical gown production capacity. The company has been putting in efforts to optimize the operational process to maximize output of the production lines.
Owens & Minor, Inc. Price and EPS Surprise
Owens & Minor, Inc. price-eps-surprise
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Owens & Minor, Inc. Quote
With the unrelenting spread of COVID-19 across the globe through the first-quarter months, the demand for its personal protective equipment (“PPE”) line has reached sky high. The latest developments accordingly are likely to have significantly boosted the company’s top line in the first 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.
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 first-quarter results.
The Estimate Picture
For first-quarter 2021, the Zacks Consensus Estimate for total revenues of $2.29 billion implies an improvement of 7.9% from the prior-year reported figure.
The consensus estimate for earnings per share is pegged at 97 cents, implying a massive improvement from the prior-year reported figure of 4 cents.
What Our Model Suggests
Our proven model predicts an earnings beat for Owens & Minor this time around. The combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the chances of an earnings beat. That is exactly the case here as you will see below.
Earnings ESP:
Owens & Minor has an Earnings ESP of +2.41%. 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 #2.
Other Stocks Worth a Look
Here are a few medical stocks worth considering, as these also have the right combination of elements to beat on earnings this reporting cycle.
DENTSPLY SIRONA Inc.
XRAY
has an Earnings ESP of +11.36% and a Zacks Rank of 2. You can see
the complete list of today’s Zacks #1 Rank stocks here.
Chimerix, Inc.
CMRX
has an Earnings ESP of +42.7% and a Zacks Rank of 2, at present.
Inogen, Inc
INGN
has an Earnings ESP of +46.43% and is a Zacks #2 Ranked stock.
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