Owens & Minor Inc.OMI reported adjusted earnings of 56 cents per share in the fourth quarter of 2015, which beat the Zack Consensus Estimate by 7 cents.
Revenues remained flat on a year-over-year basis at $2.49 billion, which was almost in line with the Zacks Consensus Estimate.
Domestic revenues grossed $2.38 billion, demonstrating an increase of 1.3% on a year-over-year basis. The acquisition of Medical Action Industries, which accounted for 1.5% of the annual revenue increase, also drove domestic service revenues.
Domestic segment operating earnings totaled $62.5 million, an increase of 8.7% from the year-ago quarter. The improvement stemmed from revenue growth, benefits from manufacturer product price changes, synergies from Medical Action, expense control initiatives and lower fuel costs.
The International segment revenues grossed $103 million, which deteriorated almost 25.6% from the year-ago quarter. Loss of healthcare customers was one of the primarily factors behind the decline.
The International segment recorded operating earnings of $10.6 million.
Owens & Minor reported full-year 2015 consolidated revenues of $9.77 billion, which improved 3.5% over full-year 2014.
Gross profit declined 6% year over year to $312.2 million. Gross margin remained flat with the year-ago quarter figure at12.6%
Selling, general and administrative (SG&A) expenses fell 3.2% year over year to $236.4 million, whereas depreciation & amortization expenses declined 11.5% from the year-ago quarter to $13.7 million.
Operating earnings increased 7% year over year to $63.1 million primarily due to the decline in operating expenses. Operating margin expanded 20 basis points (bps) on a year-over-year basis to 2.5% in the quarter.
For full-year 2016, Owens & Minor forecasts adjusted earnings in the range of $2.00 to $2.05 per share.
Zacks Rank & Key Picks
Currently, Owens & Minor carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the same space include Hill-Rom Holdings, Inc. HRC , LeMaitre Vascular, Inc. LMAT and OraSure Technologies, Inc. OSUR . All the three companies sport a Zacks Rank #1 (Strong Buy).