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Fresenius Medical (FMS) Q4 Earnings Beat Estimates, Up Y/Y

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Fresenius Medical Care AG & Co. KGaA (FMS - Free Report) reported adjusted earnings per share (EPS) of 75 cents in fourth-quarter 2019, which beat the Zacks Consensus Estimate of 68 cents by 10.3%. Moreover, the bottom line improved 13.6% year over year.
 
Revenues increased 3.3% year over year to $5.1 billion and beat the Zacks Consensus Estimate by 6.3%.

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

Health Care Services revenues improved 6% on a year-over-year basis and 3% at constant currency (cc). The improvement came on the back of growth in same market treatments, acquisitions, and increases in organic revenue per treatment. However, the effect of sold or closed clinics and decline courtesy of prior-year revenues from divested activities of Sound Physicians partially offset the improvement.
 
Health Care Products revenues climbed 10% year over year and 8% at cc. The upside can primarily be attributed to higher sales of home hemodialysis products, primarily as a result of the NxStage buyout and higher sales of dialyzers. Lower volume of sales of machines partially negated the upside.

Geographical Growth

North America

Revenues in the region grew 6% year over year and 3% at cc. On organic basis, sales in the region improved 5%.
 
EMEA
 
Revenues in this region increased 4% year over year and 4% cc in the quarter. On organic basis, sales in the region advanced 3%.
 
Asia-Pacific
 
Revenues in this region improved 10% year over year and 7% at cc in the reported quarter. On an organic basis, sales in the region improved 6%.
 
Latin America
 
Revenues in Latin America rose 6% year over year and 24% at cc. Organic growth in region was 19%.

Guidance
 
For 2020, this Zacks Rank #3 (Hold) company expects adjusted revenues and adjusted net income to improve at a mid to high-single digit rate.
 
Summing Up
 
Fresenius Medical reported strong results in the fourth quarter. The company continues to gain from Health Care Products and Services units, which witnessed revenue growth in the quarter under review. Revenues in the North American, EMEA and Asia-Pacific regions also improved. In fact, management remains optimistic regarding the buyouts of Sound Physicians and NxStage Medical.
 
Furthermore, strong view for 2020 paints a brighter picture. Management anticipates undertaking meaningful investments in 2020 to capitalize on growth opportunities and optimize cost base.

However, Fresenius Medical faces intense competition in the field of health care services, and sale of dialysis products, which remains a concern.
 
Earnings of Other MedTech Majors at a Glance

Some better-ranked stocks which reported solid results this earning season are Stryker Corporation (SYK - Free Report) , Accuray Incorporated (ARAY - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stryker delivered fourth-quarter 2019 adjusted EPS of $2.49, outpacing the Zacks Consensus Estimate by 1.2%. Fourth-quarter reported revenues of $4.13 billion surpassed the Zacks Consensus Estimate by 0.7%. The company carries a Zacks Rank #2 (Buy).

Accuray reported second-quarter fiscal 2020 adjusted earnings per share (EPS) of a penny, beating the Zacks Consensus Estimate of a loss of 7 cents. Net revenues of $98.8 million outpaced the Zacks Consensus Estimate by 0.3%. The company sports a Zacks Rank #1.

IDEXX Laboratories reported fourth-quarter 2019 adjusted EPS of $1.04, which beat the Zacks Consensus Estimate of 91 cents by 14.3%. Revenues were $605.4 million, surpassing the Zacks Consensus Estimate by 0.9%. The company carries a Zacks Rank of 2.

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