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Fresenius Medical's (FMS) Q4 Earnings and Revenues Beat

Fresenius Medical Care AG & Co. KGaA FMS reported fourth-quarter 2022 adjusted earnings per share (EPS) of 44 cents, which beat the Zacks Consensus Estimate of 22 cents by 100%. The bottom line, however, declined 13.7% year over year.

Revenue Details

Fourth-quarter revenues of $5.1 billion outpaced the Zacks Consensus Estimate by 5.22%. The company reported revenue growth of 7.5% year over year and 2% at constant currency. On an organic basis, revenues were up 2.2%.

Segmental Details

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

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Health Care Services’ revenues rose 9% on a year-over-year basis and 2.5% at constant currency (cc). On an organic basis, revenues were up 2.8%.

Health Care Products’ revenues increased 2.3% on a year-over-year basis and 0.2% at cc. On an organic basis, sales improved 0.2%.

Geographical Growth

North America

Revenues in the region rose 11.8% on a year-over-year basis but declined 0.1% at cc. On an organic basis, sales in the region were up 0.1%.

EMEA

In the quarter under review, revenues in this region declined 0.2% on a year-over-year basis. On an organic and cc basis, sales in the region were up 2.4%.

Asia-Pacific

Revenues in this region advanced 2.1% year over year and 3% at cc. On an organic basis, revenues were up 3.1% in the reported quarter.

Latin America

Revenues in Latin America declined 16.3% year over year but increased 33% at cc. Organic growth in the region was up 33.9%.

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

2023 Outlook

Fresenius Medical provided its outlook for revenues and operating income in 2023. The company expects revenues to grow at a low to mid-single digit percentage rate in 2023. Operating income is estimated to remain flat or decline by up to a high-single digit percentage rate in 2023.

Summing Up

Fresenius Medical exited the fourth quarter on a decent note. The company benefited from revenue growth across North America and Asia Pacific regions. Strength in both Health Care Services and Health Care Products businesses in the fourth quarter was encouraging.

However, the company’s earnings were hurt by significantly high labor costs that worsened during the quarter, resulting in higher-than-expected labor costs. Higher material and logistic costs in Health Care Products also impacted earnings growth. During the fourth quarter of 2022, the company’s EMEA and Latin American regions faced unfavorable impact of currency movement. The company faces intense competition in the field of healthcare services and the sale of dialysis products.

Zacks Rank and Stocks to Consider

Currently, Fresenius Medical Care carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space that have announced quarterly results are AmerisourceBergen ABC, McKesson Corporation MCK and Hologic, Inc. HOLX.

AmerisourceBergen, carrying a Zacks Rank #2 (Buy), reported first-quarter fiscal 2022 adjusted EPS of $2.71, beating the Zacks Consensus Estimate by 3.4%. Revenues of $62.85 billion outpaced the consensus mark by 0.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AmerisourceBergen has a long-term estimated growth rate of 8.7%. ABC’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 3.47%.

McKesson, having a Zacks Rank #2, reported third-quarter fiscal 2023 adjusted EPS of $6.90, which beat the Zacks Consensus Estimate by 8.8%. Revenues of $70.49 billion outpaced the consensus mark by 0.02%.

McKesson has a long-term estimated growth rate of 10.4%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average surprise being 3.4%.

Hologic reported first-quarter fiscal 2023 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate by 18.9%. Revenues of $1.07 billion surpassed the Zacks Consensus Estimate by 9.5%. It currently sports a Zacks Rank #1.

Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 30.6%.

Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 25.4%.

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

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