On Apr 15, Zacks Investment Research upgraded
Owens & Minor Inc.
) to a Zacks Rank #2 (Buy) from a Zacks Rank #3 (Hold).
COVIDIEN PLC (COV): Free Stock Analysis
ENZYMOTEC LTD (ENZY): Free Stock Analysis
OWENS & MINOR (OMI): Free Stock Analysis
WILLIAM DEMANT (WILYY): Get Free Report
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Why the Upgrade?
OMI has been witnessing rising earnings estimates on the back of
strong fourth-quarter and full-year 2013 results and an enhanced
guidance for fiscal 2014. Moreover, this Virginia-based
healthcare logistics company has delivered positive earnings
surprises in 3 of the last 4 quarters with an average beat of
0.9%. The long-term expected earnings growth rate for this stock
OMI reported fourth-quarter and full-year 2013 results on Feb 10.
Adjusted earnings per share came in at 52 cents for the quarter,
beating the Zacks Consensus Estimate of 51 cents by 2.0% and
exceeding the prior-year earnings by 26%.
Earnings were primarily aided by year-over-year top-line
improvement of 1.1%, which was primarily driven by 8.6% growth in
the company's international business resulting from quarterly
revenues of $105 million contributed by Movianto. A second
consecutive quarter of modest growth in OMI's domestic business
induced the quarter-over-quarter improvement in the company's
On a quarterly basis, OMI's consolidated gross margin improved on
the back of combined growth in both international and domestic
business segments. Further, the company's strategic initiatives,
including the fee-for-service business, contributed to improved
gross margin in the domestic segment.
Based on its progress, OMI reiterated its adjusted earnings per
share projection for 2014 in the range 0f $1.95-$2.05. Management
also expects net revenues to increase 2% in 2014.
The Zacks Consensus Estimate for earnings for 2014 remained flat
at $2.00 over the last 60 days, with one upward estimate
revision. Likewise, for 2015, one estimate was revised upward and
one revised downward over the same time frame, thereby keeping
the Zacks Consensus Estimate unchanged at $2.16.
Other Stocks to Consider
In the medical products space,
William Demant Holding A/S
) are performing well. While Enzymotec holds a Zacks Rank #1
(Strong Buy), Covidien and William Demant retain a Zacks Rank #2