OMI - Owens & Minor: After Q1 Long-Term Guidance Remains At Risk

2024-05-04 04:47:15 ET

Summary

• Owens & Minor's shares plunged 20% after reporting Q1 earnings, despite being up 36% from last year.
• The company's challenges and underperformance make it an unfavorable investment, as operating expenses remain high and free cash flow weak.
• OMI's thin margin and difficulties in margin expansion pose long-term risks, and GLP-1 drugs threaten long-term growth.

Shares of Owens & Minor ( OMI ) plunged 20% on Friday after reporting Q1 earnings, though shares are still up 36% from last year. I last covered OMI in December, recommending investors sell shares. Since then, the stock is down by 11% while the S&P has rallied by 11%. Given this underperformance, now is a good time to revisit OMI. The challenges the business faces leaves me a seller of the stock....

For further details see: