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Fresenius Medical (FMS) Q3 Earnings Beat Estimates, Down Y/Y

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·4-min read
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Fresenius Medical Care AG & Co. KGaA FMS reported third-quarter 2021 adjusted earnings per share (EPS) of 55 cents, which beat the Zacks Consensus Estimate of 54 cents by 1.9%. However, the bottom line declined 22.5% year over year.

Revenue Details

Revenues improved 1.5% year over year to $5.24 billion but missed the Zacks Consensus Estimate by 2.5%.

Segmental Details

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

Health Care Services revenues rose 1% on a year-over-year basis and 2% at constant currency (cc). The company experienced organic growth in the quarter under review despite the COVID-19 pandemic and a lower reimbursement for calcimimetics.

Health Care Products revenues remained flat on a year-over-year basis but declined 1% at cc. Lower sales of in-center disposables and peritoneal dialysis products were offset by favorable exchange rate effects and an increase in sales of machines for chronic treatment.

Geographical Growth

North America

Revenues in the region remained flat on a year-over-year basis but improved 1% at cc. On an organic basis, sales in the region rose 1%.

EMEA

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

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Asia-Pacific

Revenues in this region advanced 4% year over year and 3% at cc in the reported quarter. On an organic basis, sales in the region rose 2%.

Latin America

Revenues in Latin America rose 5% year over year and 13% at cc. Organic growth in the region was 12%.

Guidance

Based on Fresenius Medical’s present projections, the company confirmed its 2021 outlook. The company anticipates revenues to improve at a low-to-mid-single digit percentage rate. Net income is expected to decline at a high-teens to mid-twenties percentage rate compared with the 2020 base and is anticipated to be at the lower end of these guidance ranges.

Summing Up

Fresenius Medical exited the third quarter on a mixed note. The company benefited from revenue growth across Asia Pacific and Latin America regions. Strength in Health Care Services in the quarter under review is encouraging.

However, the company witnessed decline in revenues in the EMEA region. Weakness across the Health Care Products unit is a woe. The company faces intense competition in the field of health care services and sale of dialysis products, which remains a concern.

Zacks Rank

The company has a Zacks Rank #5 (Strong Sell).

Earnings of Other MedTech Majors at a Glance

Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Thermo Fisher Scientific Inc. TMO, West Pharmaceutical Services, Inc. WST, and AngioDynamics, Inc. ANGO. While both Thermo Fisher and AngioDynamics sport a Zacks Rank of 1 (Strong Buy), West Pharmaceutical carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher reported third-quarter 2021 adjusted EPS of $5.76, which beat the Zacks Consensus Estimate by 23.3%. Third-quarter revenues of $9.33 billion outpaced the consensus mark by 12%.

West Pharmaceutical reported third-quarter 2021 adjusted EPS of $2.06, which surpassed the Zacks Consensus Estimate by 13.2%. Third-quarter revenues of $706.5 million outpaced the Zacks Consensus Estimate by 3.2%.

AngioDynamics reported first-quarter fiscal 2022 loss per share of 2 cents, narrower than the Zacks Consensus Estimate of a loss of 5 cents. Revenues of $76.9 million surpassed the Zacks Consensus Estimate by 8.4%.


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

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