Benzinga | Sep 24, 2020 07:47AM EDT

Owens & Minor Earlier Announced Raising FY20 Adj. EPS Guidance From $1.00-$1.20 To $1.75-$1.90 vs $1.08 Est.

* Company raises earnings guidance for full-year 2020; represents a 66% increase in guidance midpoint

* Company expects positive trends will continue in 2021

Owens & Minor, Inc. (NYSE-OMI) today announced an increase in full year 2020 earnings guidance. The Company is revising its outlook for full-year adjusted net income from $1.00 to $1.20 per share to adjusted net income of $1.75 to $1.90 per share. The Company expects that foreign currency will have a minimal impact on adjusted net income per share for the full year. The increase in earnings guidance is primarily a result of:

* 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 procedures volume, across most of the country, slightly above previously expected levels

* Continued strong demand for PPE

The increased full year guidance is expected to provide sequential earnings growth from Q2 to Q3 and again from Q3 to Q4. Expectation of positive business trends in 2021 will result from the acceleration of investments intended to drive future growth and ability to quickly adjust in a fluid market in addition to the reasons noted above for the improvement in earnings for full-year 2020.

"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. This is enabling us to continue to reduce the gap between customer demand and supply," said Edward A. Pesicka, President & Chief Executive Officer of Owens & Minor.