Owens & Minor Inc. (NYSE:OMI), a leading distributor of medical and surgical supplies, announced on Monday (NASDAQ:MNDY) an amendment to its executive compensation program. The board of directors approved changes to the Executive Deferred Compensation and Retirement Plan (EDCRP), set to take effect on January 1, 2025.
Under the revised plan, company contributions to executive accounts will now be at the discretion of Owens & Minor or other participating employers. Additionally, the company may choose to make non-elective contributions to the participants' accounts. These contributions will become vested after executives complete one year of service.
The updated terms largely mirror the existing EDCRP, with the key alterations focusing on the employer's contribution mechanisms. The specifics of the Amended and Restated Plan will be disclosed in full detail in the company's Annual Report on Form 10-K for the year ending December 31, 2024.
In other recent news, Owens & Minor reported a 5% year-over-year revenue increase to $2.7 billion in its Q3 2024 earnings call, with its Patient Direct segment growing by 6% due to robust demand for diabetes and sleep supplies. Despite disruptions caused by Hurricanes Helene and Milton, the company reduced its total debt by nearly $200 million in Q3.
The company's revenue forecast for 2024 is anticipated to be between $10.6 billion and $10.8 billion, with adjusted EBITDA ranging from $540 million to $550 million, and adjusted earnings per share expected to be $1.45 to $1.55.
In other recent developments, Baird adjusted the financial outlook for Owens & Minor, reducing the stock's price target to $14.00 from the previous $19.00 while maintaining a neutral rating. This followed the company's Q3 performance and the analyst's anticipation of cash flow improvement.
The acquisition of Rotech Healthcare Holdings is set to close in the first half of 2025. Despite challenges, Owens & Minor remains optimistic about ongoing improvements in global products, especially in international markets.
InvestingPro Insights
As Owens & Minor Inc. (NYSE:OMI) implements changes to its executive compensation program, it's worth considering some key financial metrics and insights from InvestingPro. The company's market capitalization stands at $911.43 million, reflecting its position in the Healthcare Providers & Services industry. Despite recent challenges, including a poor stock performance over the last month and trading near its 52-week low, there are some positive indicators for potential investors.
An InvestingPro Tip suggests that net income is expected to grow this year, which could be a positive sign in light of the company's efforts to align executive incentives with performance. Additionally, OMI is trading at a low revenue valuation multiple, potentially indicating an undervalued stock relative to its sales.
It's important to note that while the company was not profitable over the last twelve months, analysts predict it will be profitable this year. This aligns with the company's forward-looking approach in restructuring its executive compensation plan.
For investors seeking more comprehensive analysis, InvestingPro offers 8 additional tips for Owens & Minor, providing a deeper understanding of the company's financial health and market position.
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