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Fresenius Medical's (FMS) Q3 Earnings and Revenues Top
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Fresenius Medical Care AG & Co. KGaA (FMS - Free Report) reported third-quarter 2022 adjusted earnings per share (EPS) of 40 cents, which beat the Zacks Consensus Estimate of 34 cents by 8.1%. The bottom line however declined 27.3% year over year.
Revenue Details
Third-quarter revenues of $5.14 billion outpaced the Zacks Consensus Estimate by 11.6%. The company reported revenue growth of 15% year over year and 3% at constant currency.
Segmental Details
In the third quarter, Fresenius Medical reported through two segments — Health Care Services and Health Care Products.
Health Care Services revenues rose 16% on a year-over-year basis and 2% at constant currency (cc). On an organic basis, revenues were up 2%.
Health Care Products revenues increased 11% on a year-over-year basis and 4% at cc. On an organic basis, sales improved 4%.
Geographical Growth
North America
Revenues in the region rose 15% on a year-over-year basis but declined 1% at cc. On an organic basis, sales in the region were down 2%.
EMEA
Revenues in this region increased 7% on a year-over-year basis and 8% at cc in the quarter under review. On an organic basis, sales in the region also gained 8%.
Fresenius Medical Care AG & Co. KGaA Price, Consensus and EPS Surprise
Revenues in this region advanced 13% year over year and 7% at cc and organically in the reported quarter.
Latin America
Revenues in Latin America climbed 36% year over year reportedly as well as at cc. Organic growth in the region was 37%.
2022 Outlook
Based on Fresenius Medical’s present projections, the company lowered its 2022 outlook for earnings. The company continues to anticipate revenues to grow at a low-single-digit percentage rate in 2022.
The company now expects net income to decline by a high-teens to mid-twenties percentage range compared with the previous expectation of a high-teens percentage rate.
Summing Up
Fresenius Medical exited the third quarter on a decent 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 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 quarter under review, although the company witnessed COVID-19 excess mortality in line with its expectation, it remained on a high level, resulting in continued need and costs for isolation clinics and shifts as well as personal protective equipment. 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 Elevance Health, Inc. (ELV - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Accuray (ARAY - Free Report) .
Elevance Health, carrying a Zacks Rank #2 (Buy), reported third-quarter 2022 adjusted EPS of $7.53, which beat the Zacks Consensus Estimate by 6.1%. Revenues of $39.63 billion outpaced the consensus mark by 1.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Elevance Health has an earnings yield of 5.5% against the industry’s (2.3%). ELV’s earnings surpassed estimates in all the trailing four quarters, the average being 4.1%.
Medpace Holdings, having a Zacks Rank #1, reported third-quarter 2022 adjusted EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $384 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 22.7% for 2022. MEDP’s earnings surpassed estimates in the trailing four quarters, the average being 22.04%.
Accuray reported fourth-quarter fiscal 2022 adjusted loss per share of 4 cents, which surpassed the Zacks Consensus Estimate by 33.3%. Fourth-quarter revenues of $110 million outpaced the Zacks Consensus Estimate by 4.9%. It currently has a Zacks Rank #2.
Accuray has an estimated growth rate of 100% for fiscal 2023. ARAY’s earnings surpassed estimates in three of the trailing four quarters and lagged the same in one, the average surprise being 20.8%.
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Fresenius Medical's (FMS) Q3 Earnings and Revenues Top
Fresenius Medical Care AG & Co. KGaA (FMS - Free Report) reported third-quarter 2022 adjusted earnings per share (EPS) of 40 cents, which beat the Zacks Consensus Estimate of 34 cents by 8.1%. The bottom line however declined 27.3% year over year.
Revenue Details
Third-quarter revenues of $5.14 billion outpaced the Zacks Consensus Estimate by 11.6%. The company reported revenue growth of 15% year over year and 3% at constant currency.
Segmental Details
In the third quarter, Fresenius Medical reported through two segments — Health Care Services and Health Care Products.
Health Care Services revenues rose 16% on a year-over-year basis and 2% at constant currency (cc). On an organic basis, revenues were up 2%.
Health Care Products revenues increased 11% on a year-over-year basis and 4% at cc. On an organic basis, sales improved 4%.
Geographical Growth
North America
Revenues in the region rose 15% on a year-over-year basis but declined 1% at cc. On an organic basis, sales in the region were down 2%.
EMEA
Revenues in this region increased 7% on a year-over-year basis and 8% at cc in the quarter under review. On an organic basis, sales in the region also gained 8%.
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 13% year over year and 7% at cc and organically in the reported quarter.
Latin America
Revenues in Latin America climbed 36% year over year reportedly as well as at cc. Organic growth in the region was 37%.
2022 Outlook
Based on Fresenius Medical’s present projections, the company lowered its 2022 outlook for earnings. The company continues to anticipate revenues to grow at a low-single-digit percentage rate in 2022.
The company now expects net income to decline by a high-teens to mid-twenties percentage range compared with the previous expectation of a high-teens percentage rate.
Summing Up
Fresenius Medical exited the third quarter on a decent 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 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 quarter under review, although the company witnessed COVID-19 excess mortality in line with its expectation, it remained on a high level, resulting in continued need and costs for isolation clinics and shifts as well as personal protective equipment. 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 Elevance Health, Inc. (ELV - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Accuray (ARAY - Free Report) .
Elevance Health, carrying a Zacks Rank #2 (Buy), reported third-quarter 2022 adjusted EPS of $7.53, which beat the Zacks Consensus Estimate by 6.1%. Revenues of $39.63 billion outpaced the consensus mark by 1.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Elevance Health has an earnings yield of 5.5% against the industry’s (2.3%). ELV’s earnings surpassed estimates in all the trailing four quarters, the average being 4.1%.
Medpace Holdings, having a Zacks Rank #1, reported third-quarter 2022 adjusted EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $384 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 22.7% for 2022. MEDP’s earnings surpassed estimates in the trailing four quarters, the average being 22.04%.
Accuray reported fourth-quarter fiscal 2022 adjusted loss per share of 4 cents, which surpassed the Zacks Consensus Estimate by 33.3%. Fourth-quarter revenues of $110 million outpaced the Zacks Consensus Estimate by 4.9%. It currently has a Zacks Rank #2.
Accuray has an estimated growth rate of 100% for fiscal 2023. ARAY’s earnings surpassed estimates in three of the trailing four quarters and lagged the same in one, the average surprise being 20.8%.