Shares of Owens & Minor jumped 47.3% on Thursday after the global healthcare solution provider raised its 2020 earnings outlook for the second time in the last two months.Owens & Minor (OMI) now projects adjusted EPS between $1.75 and $1.90, up from its previous guidance range of $1.00-$1.20. On July 21, the company had revised upward its full-year 2020 adjusted EPS guidance to $1.00-$1.20 from $0.50-$0.60.The company cited better-than-expected manufacturing output and improved operating efficiencies as the main reasons behind the upbeat earnings outlook. Additionally, the company pointed out strong demand for PPE kits amid the COVID-19 pandemic, higher-than-expected elective procedures volume, and deployment of PPE related production equipment in the U.S. ahead of schedule, to benefit bottom-line results.Owens & Minor’s CEO Edward A. Pesicka said, "I continue to be very proud of our teammates’ ability to rapidly bring additional, U.S.-based PPE production online ahead of schedule and increase product output. This is enabling us to continue to reduce the gap between customer demand and supply." (See OMI stock analysis on TipRanks).On August 11, Robert W. Baird analyst Eric Coldwell designated Owens & Minor as a “Fresh Pick” and advised investors to take advantage of the “unusual opportunity” in the stock. Coldwell believes that the company’s new leadership can accelerate growth amid the ongoing pandemic.Currently, the Street is sidelined on the stock as shares have put on a tremendous rally recently. The Hold analyst consensus is based on 2 Hold ratings, 2 Buys, and 2 Sells. With shares up nearly 293% year-to-date, the average analyst price target of $13.56 implies a downside potential of 33.2% from current levels.Related News: Gilead To Pay $97M To Settle Kickback Debacle Over Letairis Drug Darden Restaurants Gains 6% On 2Q Profit Guidance Penn National Dips 8% On $1B Share Offering; Deutsche Sees 66% Downside More recent articles from Smarter Analyst: * Vail Resorts Posts Wider 4Q Loss, Shares Gain On Season Pass Sales * IBEX Rises 3% On Upbeat 4Q Sales Results * E.W. Scripps Jumps 8% On Warren Buffett-Backed ION Media Deal * Lululemon vs Columbia Sportswear: Which Retail Stock Has Healthier Prospects?
