Fresenius Medical Care AG & Co. KGaA ( FMS Quick Quote FMS - Free Report) have gained 1.1% on May 11, following the company's first-quarter 2021 results. The company reported first-quarter 2021 adjusted earnings per share (EPS) of 51 cents, which beat the Zacks Consensus Estimate of 45 cents by 13.3%. However, the bottom line declined 1.9% year over year. Revenue Details
Revenues improved 2.5% year over year to $5.08 billion. However, the top line missed the Zacks Consensus Estimate by 4.1%.
In the first quarter, Fresenius Medical reported through two segments — Health Care Services and Health Care Products.
Health Care Services revenues fell 7% on a year-over-year basis but grew 1% at constant currency (cc). The downside stemmed from a negative exchange rate impact, absence of a prior-year partial reversal of a revenue recognition adjustment along with COVID-19 effect and lower reimbursement for calcimimetics.
Health Care Products revenues dipped 1% year over year, while increasing 4% at cc. Headwinds in the form of forex and lower sales of acute care products and in-center disposables were partially offset by increase in sales of machines for chronic treatment, peritoneal dialysis and home hemodialysis products.
Geographical Growth North America Revenues in the region declined 9% on a year-over-year basis and 1% at cc. On organic basis, sales in the region fell 1%. EMEA Revenues in this region decreased 1% on a year-over-year basis, while increasing 1% at cc in the quarter. On organic basis, sales in the region inched up 1%. Asia-Pacific Revenues in this region advanced 6% year over year and 10% at cc in the reported quarter. On an organic basis, sales in the region climbed 11%. Latin America Revenues in Latin America fell 5% year over year but rose 17% at cc. Organic growth in region was 15%. 2021 Guidance
Fresenius Medical estimates 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 against the 2020 base.
Fresenius Medical exited the first quarter on a mixed note. The company benefited from Health Care Services and Health Care Products units, which witnessed revenue growth in the quarter under review on cc basis. Revenues in the Asia Pacific region witnessed noticeable improvement in the first quarter.
However, Fresenius Medical witnessed decline in revenues in the North America, EMEA and Latin America regions. Further, 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 #3 (Hold).
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