Owens & Minor Inc. (OMI), a leading medical supply distributor, reported disappointing financial results for the third quarter of 2024, causing its shares to plummet by 6.44% on Monday.
The company reported a net loss of $12.8 million, or $0.17 per share, compared to a net loss of $6.4 million, or $0.08 per share, in the same period last year. Revenue for the quarter increased by 5% year-over-year to $2.72 billion, but fell short of analysts' expectations.
The disappointing results were primarily driven by weaker-than-expected performance in the company's Patient Direct segment, which provides home healthcare supplies. This segment reported an 11.64% operating margin, lower than the 9.94% margin in the third quarter of 2023. The Products & Healthcare Services segment, which distributes medical supplies to healthcare providers, performed slightly better with a 0.21% operating margin, compared to 1.02% in the prior year period.
Owens & Minor also lowered its full-year 2024 adjusted earnings per share guidance to $1.45 to $1.55, down from its previous estimate of $1.40 to $1.70. The company cited continued pricing pressures and inflationary headwinds as reasons for the reduced outlook.
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