Why Owens & Minor (OMI) Shares Are Falling Today - Owens & Minor (NYSE:OMI)

Owens & Minor Inc OMI reported second-quarter revenue of $2.50 billion, an increase of 0.44% year-over-year, missing the consensus of $2.54 billion.
Adjusted EPS of $0.76 in Q2 was lower than $1.06 a year ago, matching the consensus of $0.76.
Gross margin expanded by 523 bps to 21.3%. Adjusted operating income declined 1.7% Y/Y to $113.6 million, and the margin was 4.5%, down by 10 bps.
Patient Direct revenue grew 145% Y/Y to $573 million, with Byram revenue growth of 17% and Apria pro forma up 4.4%.
Products & Healthcare Services revenue was $1.93 billion (-14.6% Y/Y), impacted by lower hospital procedure volume and the reduced glove cost pass-through.
Adjusted EBITDA was $156 million, and the margin expanded by 110 bps to 6.2%.
OMI's cash provided by operating activities year-to-date was $169.52 million, compared to $12.41 million a year ago. Adjusted Free cash flow was $214.44 million.
It held cash and cash equivalent of $56.41 million as of June 30, 2022.
"Looking to the balance of the year, we have considered the accelerating macroeconomic headwinds, as well as the unique labor and product availability challenges within acute care resulting in lower overall hospital volume. In recognition of these factors, we have revised our full year 2022 outlook," said CEO Edward A. Pesicka.
FY22 Guidance: Owens & Minor expects sales of $9.8 billion - $10.1 billion (prior view $9.9 billion - $10.3 billion) versus the consensus of $10.15 billion.
It expects elective procedures for the full year to be below pre-pandemic levels due to the slow start experienced in the first half of 2022.
The company expects PPE volumes to ease throughout the year.
It anticipates adjusted EPS of $2.85 - $3.15 (prior view $3.05 - $3.55), versus the consensus of $3.34.
OMI expects Adjusted EBITDA of $570 million - $610 million (prior view $580 million - $630 million).
Price Action: OMI shares are trading lower by 7.81% at $33.78 on the last check Wednesday.

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Owens & Minor Shares Slip On FY22 Outlook Cut