NYSE$ACH

Accendra Health Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported strong operating margin improvement and robust full year operating cash flow generation, enabling significant debt reduction.

Owens & Minor reported a strong finish to 2023 with top-line growth across both business segments, robust profit growth, and exceptional operating cash flow. The Patient Direct segment outperformed the market, and the Products and Healthcare Services segment displayed meaningful sequential revenue and profit improvements.

  • Consolidated revenue increased by 4% compared to the fourth quarter of 2022.
  • Patient Direct revenue grew by 8% compared to the fourth quarter of 2022.
  • Products & Healthcare Services revenue increased by 3% compared to the fourth quarter of 2022.
  • Operating income margin expanded by 436 basis points while adjusted operating income margin expanded by 154 basis points.

Headline financials

Total Revenue

$2.66B

Previous: $2.55B+4.1%
EPS (adj)

$0.69

Previous: $0.28+146.4%
Adjusted EBITDA

$170M

No prior period
Capital Expenditures

-$56.3M

Previous: $48.8M-215.4%
Net Income

$17.8M

Previous: -$58M+130.7%
Operating Income

$60M

Previous: -$49.3M+221.8%
Gross Profit

$570M

Previous: $407M+40.0%
Stock-Based Comp

$5.8M

Previous: $5.23M+11.0%

Revenue & EPS history

Owens & Minor · Revenue · Quarterly

$2.66B

Q4 2023+4.1%vs Q4 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The Company issued its outlook for 2024; summarized below:

Tailwinds

  • Revenue for 2024 to be in a range of $10.5 billion to $10.9 billion
  • Adjusted EBITDA for 2024 to be in a range of $550 million to $590 million
  • Adjusted EPS for 2024 to be in a range of $1.40 to $1.70
  • Gross margin rate of 21.0% to 21.5%
  • Adjusted effective tax rate of 27.5% to 28.5%

Headwinds

  • The Company’s outlook for 2024 contains assumptions, including current expectations regarding the impact of general economic conditions, including inflation, and the continuation of pressure on pricing and demand in our Products & Healthcare Services segment.
  • Interest expense of $141 to $146 million
  • Diluted weighted average shares of ~78.5 million
  • Capital expenditures of $220 to $240 million
  • Stable commodity prices

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 Q4 2023

Historical avgQ4 2023

+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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