Latest news with #OwensMinor
Yahoo
3 days ago
- Business
- Yahoo
Owens & Minor price target raised to $7.50 from $7 at BofA
BofA raised the firm's price target on Owens & Minor to $7.50 from $7 and keeps an Underperform rating on the shares after the company announced that it and Rotech Healthcare have mutually agreed to terminate their pending merger. The news was 'surprising' given the competitive landscape in the durable medical equipment space, says the firm, which did not view the combination of Owens & Minor and Rotech as anti-competitive. However, given the significant amount of time being allocated to this deal, the firm views the decision not to move forward favorably as it will allow the company to focus on its core operations, the analyst added. While the firm views the scrapped deal news positively, it thinks that a broader turnaround will require a 'delicate balance' of reducing costs, improving working capital, and de-levering while investing for growth, BofA says. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on OMI: Disclaimer & DisclosureReport an Issue Owens & Minor price target raised to $10 from $9 at Baird Owens & Minor's Strategic Setbacks and Financial Challenges Justify Sell Rating Owens & Minor rises 16.8% Trump-Xi call focuses on trade, PVH reports Q2 beat: Morning Buzz Owens & Minor rises 17.1%
Yahoo
3 days ago
- Business
- Yahoo
Owens & Minor and Rotech Healthcare Agree to End Previously Planned Acquisition
Owens & Minor, Inc. (NYSE:OMI) announced that it has mutually agreed with Rotech Healthcare Holdings Inc. to cancel their previously planned acquisition. A medical professional in a hospital wearing protective apparel supplied by the healthcare solutions company. As part of the agreement, Owens & Minor has paid $80 million to Rotech Healthcare. Additionally, the company will redeem $1 billion in notes issued in April 2025, which include a mandatory redemption clause, and will terminate the loan commitments from lenders that were intended to finance the acquisition. Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor, Inc. (NYSE:OMI), made the following statement: 'For many months, our teammates, along with the Rotech team, have worked tirelessly in cooperation with the Federal Trade Commission to close this transaction, and while we believe there would have been ample benefits to patients, payors, and providers by adding Rotech to our Patient Direct business, the path to obtain regulatory clearance for this merger proved unviable in terms of time, expense, and opportunity.' He further stated that the company remains confident in its strategy and will continue focusing on expanding its Patient Direct business while prioritizing balance sheet strength through improved cash flow and debt reduction. He emphasized that the home-based care market is growing and dynamic, and Owens & Minor is well-positioned to support patients with chronic conditions. Pesicka also mentioned ongoing discussions with several interested parties regarding the potential sale of their Products and Healthcare Services business. Meanwhile, the company will continue efforts to strengthen this business and capitalize on its growth opportunities. Owens & Minor, Inc. (NYSE:OMI) is a Fortune 500 global healthcare solutions provider, delivering essential products and services that support care from hospitals to patients' homes. While we acknowledge the potential of OMI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None.
Yahoo
09-05-2025
- Business
- Yahoo
Owens & Minor Inc (OMI) Q1 2025 Earnings Call Highlights: Strategic Growth Amidst Tariff ...
Revenue: $2.6 billion, up just under 1% as reported, and up 2.3% on a same-day basis compared to the prior year. Patient Direct Revenue: $674 million, grew by 6% compared to Q1 2024; 7.3% growth on a same-day basis. Products and Healthcare Services Revenue: $1.96 billion, declined by 0.8% as reported, but grew 0.7% on a same-day basis. Gross Profit: $526 million or 20% of net revenue. Gross Margin: Expanded by 40 basis points in Patient Direct; consolidated gross margin rate down by about 50 basis points. Distribution, Selling and Administrative Expenses: $462 million or 17.6% of revenue, down from $478 million or 18.3% of revenue in Q1 2024. Adjusted Operating Income: $61 million, an improvement of about 7% versus Q1 2024. Interest Expense: Just under $34 million, down $1.7 million compared to Q1 2024. Adjusted Effective Tax Rate: 31.9%, up from 29.2% in Q1 2024. Adjusted Net Income: $18 million or $0.23 per share, up from $15 million or $0.19 per share last year. Adjusted EBITDA: $122 million, up 5% from $116 million in Q1 2024. Warning! GuruFocus has detected 2 Warning Sign with HAE. Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Owens & Minor Inc (NYSE:OMI) reported a 31% increase in operating income for the Patient Direct segment, driven by strategic investments and operational improvements. The company achieved high single-digit revenue growth in sleep supplies and double-digit growth in wound supplies, ostomy, and urology categories. Owens & Minor Inc (NYSE:OMI) successfully opened new state-of-the-art distribution centers in Morgantown, West Virginia, and Sioux Falls, South Dakota, enhancing their distribution network. The company reported a record collection rate in its Byram division, with plans to extend these improvements to the Apria division. Owens & Minor Inc (NYSE:OMI) reaffirmed its guidance for the year, expecting at least 70% of earnings and cash flow to be generated in the second half of 2025. The company faces significant tariff exposure, estimated between $100 million to $150 million, primarily affecting the Products and Healthcare Services segment. Owens & Minor Inc (NYSE:OMI) experienced a decline in gross margin due to rising commodity input costs and adverse foreign currency rates. The potential sale of the Products and Healthcare Services segment creates distractions and uncertainties in day-to-day operations. Interest expenses remain a concern, with the Rotech acquisition financing expected to accrue interest before the deal closes. The company anticipates a challenging cash flow quarter due to increased inventory and strategic initiative costs, impacting working capital. Q: Can you discuss the impact of tariffs on your business and how you are addressing this with your customers? A: Edward Pesicka, President and CEO, explained that the tariff exposure is estimated between $100 million to $150 million, primarily affecting products sourced from China and Thailand. Owens & Minor is working with customers to adjust prices and identify alternative products to mitigate the impact. The company has increased inventory to manage the transition but cannot absorb the full cost of tariffs due to low profit margins. Q: How is foreign exchange volatility affecting your financial outlook for the year? A: Jonathan Leon, CFO, noted that while there was significant volatility in March, particularly in Asian currencies, the situation has stabilized. The company is comfortable with its current guidance, assuming no further significant fluctuations. Q: What is the expected impact of the Rotech acquisition on your financials, and how are you managing the associated debt? A: Jonathan Leon, CFO, stated that the Rotech acquisition is expected to be neutral in the first year and accretive in the second year. The financing is in place, and interest will begin accruing once the deal closes. The company will update guidance upon closing. Q: How are you managing the potential impact of tariffs on your Products and Healthcare Services (P&HS) segment? A: Edward Pesicka, President and CEO, clarified that the tariff exposure is primarily within the P&HS segment. The company is implementing price increases specific to affected products and leveraging its diverse manufacturing footprint to offer alternatives. Q: Can you provide more details on your cash flow expectations for the year, considering recent inventory changes? A: Jonathan Leon, CFO, confirmed that the outlook for cash flow remains unchanged, with expectations for strong free cash flow to be used for debt reduction. The company anticipates improvements in cash flow as the year progresses, despite higher-than-expected costs related to strategic initiatives. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
