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Owens & Minor (OMI) to Report Q3 Earnings: What's in Store?

Owens & Minor, Inc. OMI is scheduled to report third-quarter 2020 results on Nov 2, after the closing bell.

In the last-reported quarter, the company’s earnings of 20 cents beat the Zacks Consensus Estimate by 5.3%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, the average beat being 82.54%.

Let’s see how things have shaped up prior to this announcement.

Factors to Note

Global Products Business

Owens & Minor, during its last update in August, confirmed the continued robust demand for its personal protective equipment (“PPE”) given the unrelenting spread of the pandemic. The company expects the strength in demand for PPEs to have continued through the rest of the third quarter as well due to increased compliance to the safety protocols. This is likely to have significantly boosted the top line.

Earlier, the company noted about being on track to ramp up the production of N95 and surgical masks by installing new N95 production lines in the North Carolina and Texas facilities. This is likely to have contributed to the top line of third quarter.

Owens Minor, Inc. Price and EPS Surprise

Owens  Minor, Inc. Price and EPS Surprise

Owens Minor, Inc. price-eps-surprise | Owens Minor, Inc. Quote

Global Solutions Business

Per Owens & Minor's last update in August, it witnessed rebound in demand for elective procedures in the past few months. This improvement followed a dismal medical distribution performance during the second quarter. We expect this trend improvement to get reflected through the third-quarter result.

Over the past six months, the stock has rallied 231.6% compared with the industry’s 4.7% growth and the S&P 500's 15.2% rise despite the challenges posed by the pandemic.

The Estimate Picture

For third-quarter 2020, the Zacks Consensus Estimate for total revenues of $2.07 billion implies a decline of 13.9% from the prior-year reported figure.

The consensus estimate for earnings per share is pegged at 71 cents, implying an improvement of 222.7% from the prior-year reported figure.

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.

Earnings ESP: Owens & Minor has an Earnings ESP of +0.47%. 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 #1.

Other Stocks Worth a Look

Here are a few other medical stocks worth considering, as these too have the right combination of elements to beat on earnings this reporting cycle.

LHC Group, Inc. LHCG has an Earnings ESP of +1.85% and it currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

IDEXX Laboratories, Inc. IDXX has an Earnings ESP of +0.35% and is a Zacks #2 Ranked stock.

Quidel Corporation QDEL has an Earnings ESP of +8.14% and it flaunts a Zacks Rank of 1 at present.

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Owens Minor, Inc. (OMI): Free Stock Analysis Report
 
Quidel Corporation (QDEL): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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