Owens & Minor (NYSE:OMI) Uncertainties Rise on External Factors

Earnings for Owens & Minor (NYSE:OMI) could be under pressure in 2011 as factors beyond their control may impact the company.

Jefferies identified five elements to affect the company which Owens & Minor, for the most part, won't be able to manage.

They are healthcare utilization, Commodity prices, federal government spending, GPO renewals, and conversion of 3PL business.

Jefferies noted they do have a little more operational input on the final two mentioned above.

EPS estimates were dropped for full year 2011 from $2.10 to $2.05. Revenue for full year 2011 was also lowered from $8.43 billion to $8.42 billion.

They maintain their "Buy" rating on Owens & Minor, which closed Friday at $28.18, dropping $0.85, or 2.93 percent. They have a price target of $34 on them.