NYSE$ACH

Accendra Health Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported improved results for the 3rd consecutive quarter and doubled full year adjusted EPS guidance.

Owens & Minor reported improved financial performance in Q2 2020, driven by increased productivity, manufacturing output related to PPE, and capitalizing on an earlier than expected increase in elective procedures. The company doubled its full-year adjusted EPS guidance and reconfirmed its expectation of double-digit adjusted EPS growth in 2021.

  • Doubled adjusted net income per share compared to the second quarter of 2019.
  • Delivered adjusted operating margin expansion of 68 basis points compared to prior year.
  • Generated $57 million of operating cash flow in the second quarter from increased earnings and working capital improvements.
  • Reduced total debt by $137 million, and set aside an additional $79 million in cash for future debt reduction.

Headline financials

Total Revenue

$1.81B

Previous: $2.48B-27.2%
EPS (adj)

$0.20

Previous: $0.10+100.0%
Capital Expenditures

-$8.73M

Previous: -$21M+58.5%
Free Cash Flow

-$64.4M

Previous: -$31.5M-104.3%
Net Income

-$55.6M

Previous: -$10.5M-431.0%
Operating Income

$22.2M

Previous: $16.1M+37.5%
Gross Profit

$269M

Previous: $368M-26.9%
Cash & Equivalents

$101M

Previous: $91.3M+10.9%
Total Assets

$3.14B

Previous: $3.9B-19.5%
Stock-Based Comp

$3.87M

No prior period

Revenue & EPS history

Owens & Minor · Revenue · Quarterly

$1.81B

Q2 2020-27.2%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

The Company expects adjusted net income for 2020 to be in a range of $1.00 to $1.20 per share and continues to believe that it remains positioned to deliver double-digit earnings growth in 2021.

Tailwinds

  • Increase in PPE production capacity remains on schedule for the balance of 2020.
  • Elective procedures are in line with June 2020 levels for the remainder of the year.
  • Foreign exchange expected to have minimal impact for the full year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.5%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+2.3%

Avg return

30 days after

47%

32 / 68 earnings

Positive

+58.9%

Q2 2019

Best reaction

-37.6%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+8.7%-18.7%-23.7%
Q4 2025+5.7%+4.8%-21.0%
Q3 2025-4.8%-33.1%-47.9%
Q1 2025-9.6%-6.8%+3.2%
Q4 2024+39.0%+41.4%+24.5%
Q3 2024-11.7%-3.4%+10.3%
Q2 2024-9.4%-9.7%-5.4%
Q1 2024-21.6%-26.1%-28.9%
Q4 2023+2.7%+12.6%+23.1%
Q3 2023+25.0%+19.1%+39.5%
Q2 2023+2.5%+8.4%-6.8%
Q1 2023+31.2%+35.7%+57.4%
Q4 2022-21.3%-13.8%-28.1%
Q3 2022+3.9%+9.2%+19.8%
Q2 2022-10.8%-6.7%-25.8%
Q1 2022+10.3%+4.7%-5.2%
Q4 2021+13.3%+21.0%+21.6%
Q3 2021+23.8%+18.3%+9.5%
Q2 2021-16.8%-16.8%-16.7%
Q1 2021-4.0%-4.7%+19.8%
Q4 2020+27.8%+34.3%+51.3%
Q3 2020+1.3%-2.5%+0.2%
Q2 2020-16.2%-25.0%-2.9%
Q1 2020-6.3%-2.9%+5.6%
Q4 2019-12.0%-30.0%+0.6%
Q3 2019+8.1%+5.9%+16.9%
Q2 2019+58.9%+69.1%+148.1%
Q1 2019+7.4%+7.4%-27.1%
Q4 2018-16.6%-19.1%-45.1%
Q3 2018-37.6%-33.9%-46.3%
Q2 2018-21.7%-24.4%-5.7%
Q1 2018+6.8%+9.4%+8.2%
Q4 2017+4.4%+7.6%+9.3%
Q3 2017-24.0%-21.2%-23.7%
Q2 2017-5.9%-11.9%-13.3%
Q1 2017-4.8%-5.4%-6.3%
Q4 2016-2.6%-2.6%-2.3%
Q3 2016+1.0%+0.6%+5.4%
Q2 2016-0.1%-0.1%-2.3%
Q1 2016-2.2%
Q4 2015+7.9%
Q3 2015+1.1%
Q2 2015+5.1%
Q1 2015+3.8%
Q4 2014-3.3%
Q3 2014-2.1%
Q2 2014-2.7%
Q1 2014-2.4%
Q4 2013+3.8%
Q3 2013-1.5%
Q2 2013-3.5%
Q1 2013+6.9%
Q4 2012-1.1%
Q3 2012-1.0%
Q2 2012-6.0%
Q1 2012-2.5%
Q4 2011-0.1%
Q3 2011-1.5%
Q2 2011+0.3%
Q1 2010-0.2%
Q1 2011+2.1%
Q4 2008+2.5%
Q4 2010+2.5%
Q3 2009-1.4%
Q3 2010-1.4%
Q2 2010+2.4%
Q2 2009+2.4%
Q4 2009+2.4%

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