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Owens & Minor Inc . (NYSE:OMI) stock has reached a 52-week low, touching down at $8.23, as the healthcare solutions company grapples with a challenging market environment. This latest price level reflects a significant downturn from previous periods, with the stock experiencing a stark 1-year change, plummeting by -60.08%. Investors are closely monitoring the company’s performance, as the current valuation marks a critical juncture for Owens & Minor, which has been striving to navigate through the headwinds affecting the broader healthcare sector. The 52-week low serves as a key indicator of the market’s sentiment towards the stock’s potential for recovery and growth in the coming months.
In other recent news, Owens & Minor, Inc. released preliminary financial results for the fourth quarter and full year ended December 31, 2024, that did not meet market expectations. The company reported a net loss of $(311) to $(288) million for the fourth quarter, with revenue expected to be between $2.67 and $2.70 billion, falling short of the consensus estimate of $2.72 billion. For the full year 2024, the company anticipates revenue to range from $10.67 to $10.70 billion, and a net loss of $(378) to $(355) million.
Analysts such as Michael Cherny of Leerink Partners and Daniel Grosslight from Citi have aired their views on these preliminary results. Cherny, maintaining a market perform rating, expressed concerns about the company’s performance and its potential impact on the pending acquisition of Rotech Healthcare Holdings, Inc. Grosslight, who has a buy rating, suggested that the lower than expected results are largely due to the Patient Direct business.
In addition to the financials, Owens & Minor also expects a non-cash goodwill impairment charge of approximately $310 million within its Apria division. This is primarily due to a decline in the stock price and rising interest rates, as well as anticipated changes in pricing of a capitated contract. These are some of the recent developments concerning Owens & Minor.
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