Medline (NASDAQ:MDLN) Releases Quarterly Earnings Results, Beats Estimates By $0.18 EPS

Medline (NASDAQ:MDLN) released its quarterly earnings data on Wednesday. The company reported $0.50 EPS for the quarter, topping the consensus estimate of $0.32 by $0.18, FiscalAI reports.

Here are the key takeaways from Medline’s conference call:

• Second-quarter sales rose 12% to $7.7 billion, led by 16% growth in Supply Chain Solutions and 15% growth in U.S. acute care. Medline raised its full-year organic sales outlook to 9%-10% from 8.5%-9.5%.
• New customer signings exceeded $650 million in the first half, putting Medline ahead of pace for its $1 billion annual goal. Management cited strong opportunities across acute and non-acute care, including the expanded Allina Health partnership.
• Full-year adjusted EBITDA guidance was lowered to $3.3 billion-$3.4 billion from $3.5 billion-$3.6 billion, despite the sales outlook increase. Headwinds include operational investments, quality remediation, retail softness, Middle East-related inflation and costs from the Tracy warehouse fire.
• The Tracy fire reduced first-half net income by $336 million, with another $50 million-$100 million of related costs expected in the second half. Medline also expects quality remediation and delayed product reintroductions, including CHG wipes, to pressure earnings.
• Medline reported $920 million of first-half free cash flow and reduced net leverage to 2.9 times, meeting its long-term goal of below three times. The company is expanding and automating its California distribution footprint, which management expects to improve supply-chain resilience over time.

Medline Trading Down 16.6%

Medline stock traded down $6.99 during trading hours on Wednesday, reaching $35.05. The company had a trading volume of 15,033,593 shares, compared to its average volume of 7,254,604. The firm has a market cap of $46.05 billion and a price-to-earnings ratio of 109.53. Medline has a 12-month low of $32.81 and a 12-month high of $50.88. The company has a debt-to-equity ratio of 0.65, a current ratio of 4.41 and a quick ratio of 2.51. The company has a 50-day moving average price of $38.27 and a 200 day moving average price of $41.88.

Analyst Ratings Changes

Several equities analysts have recently weighed in on the company. Weiss Ratings cut Medline from a “sell (d+)” rating to a “sell (d)” rating in a research report on Thursday, July 23rd. William Blair reaffirmed an “outperform” rating on shares of Medline in a report on Thursday, June 4th. BTIG Research reiterated a “buy” rating and set a $55.00 target price on shares of Medline in a research report on Friday, July 31st. BNP Paribas Exane decreased their price target on shares of Medline from $49.00 to $40.00 and set a “neutral” rating on the stock in a report on Thursday, May 14th. Finally, Citigroup reduced their target price on Medline from $60.00 to $55.00 and set a “buy” rating on the stock in a research note on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $50.54.

Insider Buying and Selling at Medline

In other news, insider Jessi L. Corcoran purchased 5,000 shares of the stock in a transaction that occurred on Friday, June 5th. The stock was bought at an average cost of $34.15 per share, for a total transaction of $170,750.00. Following the acquisition, the insider directly owned 5,000 shares of the company’s stock, valued at $170,750. This represents a ? increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, insider Douglas P. Golwas sold 100,000 shares of the company’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $36.77, for a total transaction of $3,677,000.00. Following the transaction, the insider directly owned 23,899 shares of the company’s stock, valued at approximately $878,766.23. This trade represents a 80.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.81% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Sound Income Strategies LLC purchased a new position in shares of Medline during the fourth quarter valued at about $25,000. GAMMA Investing LLC boosted its position in Medline by 68.3% during the 2nd quarter. GAMMA Investing LLC now owns 626 shares of the company’s stock valued at $25,000 after acquiring an additional 254 shares in the last quarter. Entrust Financial LLC bought a new stake in Medline during the 4th quarter valued at approximately $26,000. NBC Securities Inc. bought a new position in shares of Medline in the 4th quarter worth approximately $28,000. Finally, Whipplewood Advisors LLC purchased a new position in shares of Medline in the 1st quarter valued at approximately $30,000.

Medline Company Profile

Medline (NASDAQ: MDLN) is a healthcare products and services company that manufactures, sources and distributes a wide range of medical supplies and equipment for healthcare providers. Its product portfolio spans clinical consumables and personal protective equipment, surgical and procedural supplies, wound care and incontinence products, diagnostic and laboratory supplies, and select durable medical equipment. Medline supports care settings that include hospitals, health systems, long-term care facilities, ambulatory clinics and home health providers.

In addition to product manufacturing and distribution, Medline provides supply?chain and logistics services designed to help healthcare customers manage inventory, reduce costs and streamline operations.