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Fresenius Medical (FMS) Q2 Earnings Beat Estimates, Up Y/Y
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Fresenius Medical Care AG & Co. KGaA (FMS - Free Report) reported second-quarter 2021 adjusted earnings per share (EPS) of 90 cents, which beat the Zacks Consensus Estimate of 51 cents. The bottom line improved 36.4% year over year.
Revenue Details
Revenues improved 3.7% year over year to $5.20 billion. However, the top line missed the Zacks Consensus Estimate by 2.4%.
Segmental Details
In the second quarter, Fresenius Medical reported through two segments — Health Care Services and Health Care Products.
Health Care Services revenues fell 6% on a year-over-year basis but grew 2% at constant currency (cc). The downside was due to a negative exchange rate impact, along with COVID-19 effect and lower reimbursement for Calcimimetics in North America.
Fresenius Medical Care AG & Co. KGaA Price, Consensus and EPS Surprise
Health Care Products revenues dipped 2% year over year, while increasing 2% at cc. Headwinds in the form of negative exchange rate effects and lower sales of acute care products were responsible for the downside.
Geographical Growth
North America
Revenues in the region declined 9% on a year-over-year basis but was stable at cc. On organic basis, sales in the region fell 1%.
EMEA
Revenues in this region increased 1% on a year-over-year basis, while increasing 2% at cc in the quarter under review. On organic basis, sales in the region rose 2%.
Asia-Pacific
Revenues in this region advanced 8% year over year and 11% at cc in the reported quarter. On an organic basis, sales in the region climbed 10%.
Latin America
Revenues in Latin America rose 1% year over year and 17% at cc. Organic growth in region was 14%.
Guidance
Backed by the second-quarter as well as first half results, Fresenius Medical confirmed its 2021 outlook. The company 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.
Summing Up
Fresenius Medical exited the second quarter on a mixed note. The company benefited from revenue growth across EMEA, Asia Pacific and Latin America regions.
However, the company witnessed decline in revenues in the North America region. Weakness across Health Care Services and Health Care Products units is a woe. The company faces intense competition in the field of health care services and sale of dialysis products, which remains a concern.
Hill-Rom reported third-quarter fiscal 2021 adjusted EPS of $1.38, which beat the Zacks Consensus Estimate by 2.9%. Fiscal third-quarter revenues of $717.7 million outpaced the consensus mark by 1.6%.
West Pharmaceutical reported second-quarter 2021 adjusted EPS of $2.46, which surpassed the Zacks Consensus Estimate by 41.4%. Second-quarter revenues of $723.6 million outpaced the Zacks Consensus Estimate by 8.7%.
Chemed reported second-quarter 2021 adjusted EPS of $4.60, surpassing the Zacks Consensus Estimate by 3.4%. Revenues of $532.3 million exceeded the Zacks Consensus Estimate by 0.8%.
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Fresenius Medical (FMS) Q2 Earnings Beat Estimates, Up Y/Y
Fresenius Medical Care AG & Co. KGaA (FMS - Free Report) reported second-quarter 2021 adjusted earnings per share (EPS) of 90 cents, which beat the Zacks Consensus Estimate of 51 cents. The bottom line improved 36.4% year over year.
Revenue Details
Revenues improved 3.7% year over year to $5.20 billion. However, the top line missed the Zacks Consensus Estimate by 2.4%.
Segmental Details
In the second quarter, Fresenius Medical reported through two segments — Health Care Services and Health Care Products.
Health Care Services revenues fell 6% on a year-over-year basis but grew 2% at constant currency (cc). The downside was due to a negative exchange rate impact, along with COVID-19 effect and lower reimbursement for Calcimimetics in North America.
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
Health Care Products revenues dipped 2% year over year, while increasing 2% at cc. Headwinds in the form of negative exchange rate effects and lower sales of acute care products were responsible for the downside.
Geographical Growth
North America
Revenues in the region declined 9% on a year-over-year basis but was stable at cc. On organic basis, sales in the region fell 1%.
EMEA
Revenues in this region increased 1% on a year-over-year basis, while increasing 2% at cc in the quarter under review. On organic basis, sales in the region rose 2%.
Asia-Pacific
Revenues in this region advanced 8% year over year and 11% at cc in the reported quarter. On an organic basis, sales in the region climbed 10%.
Latin America
Revenues in Latin America rose 1% year over year and 17% at cc. Organic growth in region was 14%.
Guidance
Backed by the second-quarter as well as first half results, Fresenius Medical confirmed its 2021 outlook. The company 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.
Summing Up
Fresenius Medical exited the second quarter on a mixed note. The company benefited from revenue growth across EMEA, Asia Pacific and Latin America regions.
However, the company witnessed decline in revenues in the North America region. Weakness across Health Care Services and Health Care Products units 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 Hill-Rom Holdings, Inc. , West Pharmaceutical Services, Inc. (WST - Free Report) and Chemed Corporation (CHE - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Hill-Rom reported third-quarter fiscal 2021 adjusted EPS of $1.38, which beat the Zacks Consensus Estimate by 2.9%. Fiscal third-quarter revenues of $717.7 million outpaced the consensus mark by 1.6%.
West Pharmaceutical reported second-quarter 2021 adjusted EPS of $2.46, which surpassed the Zacks Consensus Estimate by 41.4%. Second-quarter revenues of $723.6 million outpaced the Zacks Consensus Estimate by 8.7%.
Chemed reported second-quarter 2021 adjusted EPS of $4.60, surpassing the Zacks Consensus Estimate by 3.4%. Revenues of $532.3 million exceeded the Zacks Consensus Estimate by 0.8%.