Shares of medical products distributor Owens & Minor Inc. rose Thursday after the Hanover County-based company announced an increase in its full-year 2020 earnings outlook, partly on the strength of sales of personal protective equipment during the COVID-19 pandemic.
The company’s stock closed Thursday on the New York Stock Exchange at $20.31 per share, up $6.52 for the day or about 47.3% from its previous close. Shares had jumped nearly 60% during trading earlier in the day.
Owens & Minor on Thursday morning revised its outlook for full-year adjusted net income of $1.75 to $1.90 per share from a previous estimate of $1 to $1.20 per share.
The company, which provides logistics and distribution of medical supplies, said the reasons for adjusting its earnings outlook included “continued strong demand for PPE” — or personal protective equipment — and the “deployment of PPE related production equipment in the U.S. ahead of schedule.”
The company also said the volume of elective procedures being performed across the country has been “slightly above previously expected levels.”
Owens & Minor had previously adjusted its earnings outlook in July, when the company revised its estimates for net income to $1 to $1.20 per share, up from the company’s prior guidance of 50 cents to 60 cents per share. At that time, shares soared more than 81%.