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Fresenius Medical (FMS) Q3 Earnings & Revenues Top Estimates

Zacks Equity Research

Fresenius Medical Care AG & Co. KGaA FMS reported adjusted earnings per share (EPS) of 67 cents in the third quarter of 2019, which beat the Zacks Consensus Estimate of 59 cents by 13.6%. However, the bottom line declined 2.9% year over year.
 
Revenues rose 4.1% year over year to $4.91 billion and surpassed the Zacks Consensus Estimate of $4.72 billion by 4%.
 
Segmental Details
 
In the third quarter, Fresenius Medical reported through two segments — Health Care Services and Health Care Products.

Health Care Services revenues improved 7% on a year-over-year basis and 4% at cc. The improvement came on the back of growth in same market treatments, acquisitions, and increase in dialysis days. However, the effect of sold or closed clinics and a revenue recognition adjustment for accounts receivable in legal dispute partially offset the improvement.
 
Health Care Products revenues climbed 16% year over year and 13% at cc. The upside was mainly driven by higher sales of home hemodialysis products, primarily as a result of the effective roll-out of the NxStage product range, dialyzers, hemodialysis solutions and concentrates. Lower volume of sales of machines partially offset the upside.

Fresenius Medical Care AG & Co. KGaA Price, Consensus and EPS Surprise

 

 

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

Geographical Growth

North America

Revenues in the region grew 8% year over year and 3% at cc. On organic basis, sales in the region improved 3%.
 
EMEA
 
Revenues in this region increased 10% year over year and 9% cc in the quarter. On organic basis, sales in the region improved 9%. Per management, the performance was impacted by favorable business development in Health Care Services and Health Care Products.
 
Asia-Pacific
 
Revenues in this region improved 13% year over year and 9% at cc in the reported quarter. Per management, positive business development in both Health Care Services and Health Care Products led to the upside.
 
Latin America

 
Revenues in Latin America rose 7% year over year and 20% at cc. Organic growth in region was 15%.

Guidance Reiterated
 
For 2019, Fresenius Medical expects adjusted revenues to grow between 3% and 7%, and adjusted net income to develop in the range of a (2%) to 2%.
 
For 2020, this Zacks Rank #1 (Strong Buy) company expects adjusted revenues and adjusted net income to grow at a mid to high-single digit rate.
 
Summing Up
 
Fresenius Medical reported strong results in the third 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 2019 and 2020 paints a brighter picture. Management anticipates undertaking meaningful investments in 2019 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 woe.
 
Earnings of Other MedTech Majors at a Glance

Some other top-ranked stocks, which reported solid results this earning season, include Edwards Lifesciences EW, Thermo Fisher Scientific Inc. TMO and ResMed Inc. RMD. All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Edwards Lifesciences delivered third-quarter 2019 adjusted EPS of $1.41, outpacing the Zacks Consensus Estimate by 15.6%. Third-quarter net sales of $1.09 billion surpassed the Zacks Consensus Estimate by 5.5%.

Thermo Fisher delivered third-quarter 2019 adjusted EPS of $2.94, which beat the Zacks Consensus Estimate by 2.1%. Revenues of $6.27 billion outpaced the Zacks Consensus Estimate by 1.3%.

ResMed reported third-quarter 2019 adjusted EPS of 93 cents, which beat the Zacks Consensus Estimate of 87 cents by 6.9%. Revenues were $681.1 million, surpassing the Zacks Consensus Estimate by 3.6%.

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Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
 
Fresenius Medical Care AG & Co. KGaA (FMS) : Free Stock Analysis Report
 
ResMed Inc. (RMD) : Free Stock Analysis Report
 
Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
 
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