Why Owens & Minor (OMI) Stock Is Plunging Today

Owens & Minor Inc (NYSE OMI) reported Q4 adjusted EPS of $0.28, down from $0.81 a year ago and missing the consensus of $0.40,
Q4 revenues marginally increased to $2.55 billion from $2.46 billion, beating the consensus of $2.46 billion.
"Overall fourth-quarter results showed that we need to move quickly to offset volume decline, cost and pricing headwinds, particularly in our global products division. It is clear that our company's cost structure needs to be better aligned with the evolving market," said Edward Pesicka, President & CEO of Owens & Minor.
The company has initiated a company-wide realignment Program to accelerate profit improvement and reduce costs.
The program is expected to deliver approximately $30 million of Adjusted Operating Income in 2023 and approximately $200 million by 2025.
The company expects $250-$400 million of working capital benefit by 2025 from the realignment program.
Guidance: Owens & Minor expects FY23 revenue of $10.1-$10.5 billion versus the consensus of $10.09 billion and adjusted EPS of $1.15 - $1.65, much lower than the consensus of $2.29.
Price Action: OMI shares are down 10.8% at $17.50 during the premarket session on the last check Tuesday.

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