Why Owens & Minor Shares Plummeted 32.4% This Week
Shares of healthcare logistics company Owens & Minor (NYSE: OMI) dropped 32.4% this past week, according to data from S&P Global Intelligence.
The company downgraded its full-year guidance on Wednesday, dropping its 2022 earnings per share (EPS) estimate to between $2.50 and $2.60, down from previous guidance of between $2.85 and $3.15. It also lowered its projection for adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to fall between $527 million and $537 million, down from earlier forecasts of 570 million to $610 million.
Owens & Minor operates in two segments, products and healthcare services, and patient direct. The first distributes medical and surgical supplies to acute-care facilities. The second segment operates a direct-to-consumer segment that supplies testing and monitoring supplies to diabetes patients. The culprit for the lowered guidance was the products and healthcare services segment because its clients have elevated inventory levels and lower-than-expected procedure volume.
Source Fool.com