RICHMOND, Va. - Owens & Minor, Inc. (NYSE: NYSE:OMI) has reported its financial outcomes for the fourth quarter, ending December 31, 2023. The company announced a Q4 adjusted EPS of $0.69, surpassing the analyst consensus by $0.03. However, revenue for the quarter slightly missed expectations, coming in at $2.66 billion against the consensus estimate of $2.67 billion.
The healthcare solutions company experienced a 4% increase in consolidated revenue compared to the fourth quarter of the previous year, with the Patient Direct segment growing by 8% and the Products & Healthcare Services (NASDAQ:HCSG) segment by 3%. The company's operating income showed a significant improvement, with a GAAP operating income of $60 million and an adjusted operating income of $111 million, marking a substantial recovery from a GAAP operating loss of $(53.5) million in the same quarter last year.
Edward A. Pesicka, President & Chief Executive Officer, attributed the strong quarter to top-line growth across business segments and robust profit growth. "Our Patient Direct segment continued to outperform the market, showcasing the ongoing effectiveness of our go-to-market strategies on top of the healthy demand for home-based care," Pesicka stated.
Following the earnings release, Owens & Minor's stock jumped 4%, indicating a positive investor response to the earnings beat and the company's overall financial health.
For the full year 2023, Owens & Minor reported consolidated revenue of $10.3 billion and delivered $741 million of operating cash flow. The company also made significant strides in reducing its debt, cutting total debt by $403 million and net debt by $577 million.
Looking ahead, the company has issued its 2024 financial outlook, expecting revenue to be in the range of $10.5 billion to $10.9 billion and adjusted EPS to be between $1.40 and $1.70. The provided guidance is based on assumptions including stable commodity prices and foreign exchange rates as of December 31, 2023.
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