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Fresenius Medical (FMS) Q1 Earnings & Revenues Top Estimates

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Fresenius Medical Care AG & Co. KGaA FMS reported first-quarter 2022 adjusted earnings per share (EPS) of 38 cents, which beat the Zacks Consensus Estimate of 30 cents by 26.7%. The bottom line, however, declined 25.5% year over year.

Revenue Details

Revenues improved 0.6% year over year to $5.10 billion and outpaced the Zacks Consensus Estimate by 2.7%.

Segmental Details

In the first quarter, Fresenius Medical reported through two segments — Health Care Services and Health Care Products.

Health Care Services revenues rose 8% on a year-over-year basis and 3% at constant currency (cc). On an organic basis, revenues increased 1%.

Health Care Products revenues increased 6% on a year-over-year basis and 3% at cc. On an organic basis, sales improved 3%.

Geographical Growth

North America

Revenues in the region rose 9% on a year-over-year basis and 2% at cc. On an organic basis, sales in the region remained flat.

EMEA

Revenues in this region increased 1% on a year-over-year basis and 3% at cc in the quarter under review. On an organic basis, sales in the region rose 2%.

Fresenius Medical Care AG & Co. KGaA Price, Consensus and EPS Surprise

Fresenius Medical Care AG & Co. KGaA Price, Consensus and EPS Surprise
Fresenius Medical Care AG & Co. KGaA Price, Consensus and EPS Surprise

Fresenius Medical Care AG & Co. KGaA price-consensus-eps-surprise-chart | Fresenius Medical Care AG & Co. KGaA Quote

Asia-Pacific

Revenues in this region advanced 8% year over year and 4% at cc in the reported quarter. On an organic basis, sales in the region rose 4%.

Latin America

Revenues in Latin America climbed 15% year over year and 15% at cc. Organic growth in the region was 16%.

2022 Outlook

Based on Fresenius Medical’s present projections, the company confirmed its 2022 outlook. The company anticipates both net income and revenues to grow at a low-to-mid-single-digit percentage rate.

Summing Up

Fresenius Medical exited the first quarter on a strong note. The company benefited from revenue growth across North America, EMEA, Asia Pacific and Latin America regions. Strength in both Health Care Services and Health Care Products businesses in the quarter under review is encouraging.

However, the company witnessed earnings growth being impacted by significantly high labor costs currently prevailing compounded by the impact of the Omicron variant on Health Care services. Higher material and logistic costs in Health Care Products also impacted earnings growth. During the quarter under review, the company witnessed higher-than-expected COVID-19 excess mortality, which declined throughout the quarter. The company faces intense competition in the field of health care services and the sale of dialysis products, which remains a concern.

Zacks Rank

The company has a Zacks Rank #4 (Sell).

Key Picks

Some better-ranked stocks in the broader medical space that have announced quarterly results are Omnicell, Inc. OMCL, UnitedHealth Group Incorporated UNH and Alkermes plc ALKS.

Omnicell, carrying a Zacks Rank #2 (Buy), reported first-quarter 2022 adjusted EPS of 83 cents, which beat the Zacks Consensus Estimate by 16.9%. Revenues of $318.8 million outpaced the consensus mark by 0.7%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Omnicell has an estimated long-term growth rate of 16%. OMCL's earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 13.4%.

UnitedHealth, carrying a Zacks Rank #2, reported first-quarter 2022 adjusted EPS of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 1.9%.

UnitedHealth has an estimated long-term growth rate of 14.8%. UNH's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.7%.

Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which beat the Zacks Consensus Estimate of a penny. First-quarter revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #1.

Alkermes has an estimated long-term growth rate of 25.1%. ALKS' earnings surpassed estimates in each of the trailing four quarters, the average surprise being 350.5%.


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UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report

Alkermes plc (ALKS) : Free Stock Analysis Report

Omnicell, Inc. (OMCL) : Free Stock Analysis Report

Fresenius Medical Care AG & Co. KGaA (FMS) : Free Stock Analysis Report

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