Owens & Minor (OMI) – Get Report shares skyrocketed Thursday after the maker of medical supplies including personal protection equipment raised its earnings guidance.
Owens & Minor stock was trading Thursday at $21.25, up 54.13%, and has soared an astronomical 314% so far this year.
The coronavirus pandemic, of course, has created an explosion of demand for PPE.
Owens & Minor boosted its adjusted profit forecast for all of 2020 to a range of $1.75 to $1.90 a share, up from $1 to $1.20.
In a statement, the company said the increase stemmed from:
- Strong operational execution related to productivity leading to better-than-expected manufacturing output and operating efficiencies;
- Deployment of PPE-related production equipment in the U.S. ahead of schedule;
- Elective-procedure volume, across most of the country, slightly above previously expected levels;
- Continued strong demand for PPE.
That should mean sequential earnings growth in the third quarter from the second and in the fourth quarter from the third, Owens & Minor said. Owens & Minor said it also expects a strong 2021.
“I continue to be very proud of our teammates’ ability to rapidly bring additional, U.S.-based PPE production online ahead of schedule and increase product output,” said Owens & Minor CEO Edward Pesicka. “This is enabling us to continue to reduce the gap between customer demand and supply.”
In the second quarter, the company’s operating income increased to $22.2 million from $15.9 million last year. “During this quarter we continued to achieve operating efficiencies and productivity improvements while expanding our Americas based manufacturing capacity,” the CEO said.