Shares of medical supply maker Owens & Minor Inc. (OMI) jumped more than 30% Wednesday after topping analysts' fourth quarter expectations by a wide margin.
The Mechanicsville, Virginia company reported before Wednesday's open adjusted profits of $79.8 million, or $1.14 per share, on revenue of $2.36 billion. Analysts were expecting earnings of just 85 cents per share on revenue of $2.2 billion.
"In the midst of the pandemic, we utilized the Owens & Minor's disciplined business process to drive productivity and improve our customers’ experience. Specifically, we enhanced our Americas based vertically integrated manufacturing capabilities to address our customers’ current and future needs for our market leading broad-based products and services," said CEO Edward Pesicka.
Shares of Owens & Minor were up 36.9% to $34.80 per share in late morning trading Wednesday.
Separately, the company announced the election of Aster Angagaw and Stephen Klemash to its board of directors. Angagaw, 57, most recently served as president of home cleaning company ServiceMaster Brands, while Klemash, 60, is currently lead partner with Ernst & Young Americas Center for Board Matters.
“Aster and Steve each have unique skillsets that will help inform Owens & Minor’s standing as an industry innovator and a valued partner to our customers,” said Pesicka.
The company's board approved a first quarter dividend of $0.0025 per share, payable March 31 to shareholders of record on March 15.
The company expects adjusted net income for 2021 to range between $3 and $3.50 per share, a 33% to 55% increase over 2020 that the company expects to be driven by an increase in personal protective equipment (PPE) capacity and manufacturing efficiencies, as well as strength in elective procedures, continuing through the first half of the year.