On Monday, Owens & Minor Inc. (NYSE:OMI) reported adjusted earnings for the second quarter that missed analyst projections as the healthcare services firm advances its plan to sell off its Products & Healthcare Services (NASDAQ:HCSG) division.
Following the announcement, the company’s shares dropped 1.83% in after-hours trading.
Adjusted earnings per share for Q2 came in at $0.26, below the expected $0.29. Revenue from continuing operations—mainly the Patient Direct segment—rose 3.3% to $681.9 million from $660.4 million in the same period last year.
“We are in the final stages of our robust process for the divestiture of the Products & Healthcare Services segment, and, as a result, have classified this segment as discontinued operations,” said CEO Ed Pesicka. “I am excited about the opportunities ahead as we transition into a focused, pure-play Patient Direct business.”
Adjusted EBITDA from continuing operations increased to $96.6 million, up from $91.1 million a year earlier. The company has designated its Products & Healthcare Services segment as discontinued operations amid the anticipated sale.
The quarter included notable one-off costs, such as an $80 million transaction termination fee linked to the cancelled Rotech acquisition, along with $18.3 million in transaction financing expenses.
“Building on the momentum gained since we entered the Patient Direct space eight years ago, and supported by favorable demographic trends and meaningful scale, we are confident in our ability to lead as the market continues to evolve,” Pesicka added.
Owens & Minor is expected to release its 2025 financial outlook for continuing operations during its upcoming earnings call.
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