On Friday, Owens & Minor Inc. ( OMI )  reported first-quarter adjusted EPS of $0.19, up from $0.05 a year ago and beating the consensus of $0.18.

Adjusted net income of $14.9 million was higher than $3.6 million a year ago.

The company reported sales of $2.61 billion, up 4% Y/Y, almost in line with the consensus of $2.61 billion.

Patient Direct revenue was $638 million, up 5% year over year. Products & Healthcare Services revenue was nearly $2 billion, up 3%.

“Our solid performance in the first quarter was in line with our expectations, as we delivered top-line growth in both segments, adjusted operating margin expansion, and improved year-over-year profitability,” said Edward A. Pesicka, President & CEO.

“In our Products & Healthcare Services segment, we onboarded new customers, grew same-store sales, and invested in inventory to support our new wins and provide best-in-class service levels. On the heels of double-digit growth in the prior years, our Patient Direct segment delivered mid-single-digit top-line growth while navigating the unique challenges that occurred in the quarter, demonstrating the strength of our team and the effectiveness of our go-to-market strategies,” concluded Mr. Pesicka.

Adjusted operating income from $47.7 million to $57.4 million, with adjusted EBITDA of $116.3 million, up from $108.7 million a year ago.

The first quarter’s gross margin improved 79 basis points to 20.5%.

Guidance: Owens & Minor ( OMI ) reaffirms 2024 revenue guidance of $10.5 billion-$10.9 billion versus the consensus of $10.66 billion.

The company continues to expect 2024 adjusted EPS of $1.40-$1.70 versus the consensus of $1.57.

Price Action: OMI shares are down 20.30% at $19.53 at last check Friday.