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Why Owens & Minor Stock Is Tumbling Today

What happened

Shares of Owens & Minor (NYSE: OMI) were tumbling 9.5% lower as of 11:24 a.m. EDT on Tuesday. The decline came after the healthcare solutions company provided its second-quarter update.

So what

Owens & Minor reported Q2 revenue of $2.5 billion, a 38% year-over-year increase. This result came in slightly higher than the consensus estimate of $2.47 billion. It also delivered record earnings, with adjusted earnings per share of $1.06 well above the average analysts' estimate of $0.97.

Image source: Getty Images.

So why did the healthcare stock fall after beating Wall Street's top- and bottom-line estimates? Some investors perhaps hoped for a guidance boost but didn't get it. Owens & Minor reaffirmed its previous full-year 2021 guidance of adjusted earnings between $3.75 and $4.25 per share. The company also maintained its previously announced outlook for 2022.

Now what

The main thing to watch with Owens & Minor going forward is the COVID-19 pandemic. The company's personal protective equipment sales could rise with increased concerns about the delta variant. However, Owens & Minor's other businesses could be negatively impacted if COVID-19 causes disruption for healthcare providers.

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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


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