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Fresenius Medical (FMS) Q2 Earnings & Sales Lag Estimates
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Fresenius Medical Care AG & Co. KGAA (FMS - Free Report) reported adjusted earnings of 48 cents per American Depositary Share (ADS) in the second quarter of 2016, missing the Zacks Consensus Estimate by a penny. However, earnings per ADS increased 21.6% from the year-ago quarter.
Revenues increased 5.3% (7% at constant currency) on a year-over-year basis to $4.42 billion but missed the Zacks Consensus Estimate of $4.50 billion.
Segment Details
Net Healthcare revenues grew 6.8% to $3.57 billion, with significant contribution from the North American market. Dialysis product revenues decreased 0.5% to $849 million. On a constant currency basis, revenues generated from dialysis products increased 2%.
By geography, North America revenues rose 7.5% year over year to $3.17 billion. Health care services revenue grew by 8% to $2.94 billion. Revenues from the care Coordination business grew an impressive 21% to $564 million, while organic revenue growth was 17%. Dialysis business grew by 5% in the reported quarter.
EMEA revenues increased 3% to $676 million at constant currency. Health care services revenues increased by 7% (up 9% at constant currency) to $331 million driven by higher contributions from acquisitions (7%) and organic revenue growth (3%).
Dialysis treatments increased by 9% in the reported quarter. Dialysis products revenue decreased by 4% (down 3% at constant currency) to $345 million primarily attributed to lower sales of dialyzers, machines, renal pharmaceuticals and bloodlines.
Revenues from Asia-Pacific grew 6% at constant currency to $397 million. Net Health Care revenues were $177 million, driven by 4% growth in dialysis treatments. The product business surged more than 9% at constant currency to $220 million, owing to strong sales performance across the entire dialysis products range.
Latin America revenues decreased 13.7% at constant currency to $175 million. Health care services revenue decreased 17% to $125 million (up 9% at constant currency) due to negative foreign currency effects and the effect of closed or sold clinics primarily in Venezuela.
Dialysis treatments decreased 7%, which was partially mitigated by the strong organic revenue growth of 19%. Dialysis products revenue decreased 5% to $50 million (up 8% at constant currency). The constant currency increase came on the back of higher sales of dialyzers, hemodialysis solutions and concentrates, machines and bloodlines, partially neutralized by lower sales of peritoneal dialysis products.
Guidance
For 2016, Fresenius Medical estimates revenue growth of 7%–10% at constant currency excluding acquisitions. Net income attributable to shareholders of the company is likely to increase around 15%–20% in 2016.
Zacks Rank & Key Picks
Currently, Fresenius Medical carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical sector are Masimo Corp (MASI - Free Report) , Cepheid and Natus Medical . All the three stocks sport a Zacks Rank #1 (Strong Buy).
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Fresenius Medical (FMS) Q2 Earnings & Sales Lag Estimates
Fresenius Medical Care AG & Co. KGAA (FMS - Free Report) reported adjusted earnings of 48 cents per American Depositary Share (ADS) in the second quarter of 2016, missing the Zacks Consensus Estimate by a penny. However, earnings per ADS increased 21.6% from the year-ago quarter.
Revenues increased 5.3% (7% at constant currency) on a year-over-year basis to $4.42 billion but missed the Zacks Consensus Estimate of $4.50 billion.
Segment Details
Net Healthcare revenues grew 6.8% to $3.57 billion, with significant contribution from the North American market. Dialysis product revenues decreased 0.5% to $849 million. On a constant currency basis, revenues generated from dialysis products increased 2%.
By geography, North America revenues rose 7.5% year over year to $3.17 billion. Health care services revenue grew by 8% to $2.94 billion. Revenues from the care Coordination business grew an impressive 21% to $564 million, while organic revenue growth was 17%. Dialysis business grew by 5% in the reported quarter.
EMEA revenues increased 3% to $676 million at constant currency. Health care services revenues increased by 7% (up 9% at constant currency) to $331 million driven by higher contributions from acquisitions (7%) and organic revenue growth (3%).
FRESENIUS MED Price, Consensus and EPS Surprise
FRESENIUS MED Price, Consensus and EPS Surprise | FRESENIUS MED Quote
Dialysis treatments increased by 9% in the reported quarter. Dialysis products revenue decreased by 4% (down 3% at constant currency) to $345 million primarily attributed to lower sales of dialyzers, machines, renal pharmaceuticals and bloodlines.
Revenues from Asia-Pacific grew 6% at constant currency to $397 million. Net Health Care revenues were $177 million, driven by 4% growth in dialysis treatments. The product business surged more than 9% at constant currency to $220 million, owing to strong sales performance across the entire dialysis products range.
Latin America revenues decreased 13.7% at constant currency to $175 million. Health care services revenue decreased 17% to $125 million (up 9% at constant currency) due to negative foreign currency effects and the effect of closed or sold clinics primarily in Venezuela.
Dialysis treatments decreased 7%, which was partially mitigated by the strong organic revenue growth of 19%. Dialysis products revenue decreased 5% to $50 million (up 8% at constant currency). The constant currency increase came on the back of higher sales of dialyzers, hemodialysis solutions and concentrates, machines and bloodlines, partially neutralized by lower sales of peritoneal dialysis products.
Guidance
For 2016, Fresenius Medical estimates revenue growth of 7%–10% at constant currency excluding acquisitions. Net income attributable to shareholders of the company is likely to increase around 15%–20% in 2016.
Zacks Rank & Key Picks
Currently, Fresenius Medical carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical sector are Masimo Corp (MASI - Free Report) , Cepheid and Natus Medical . All the three stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>