Why Did Fresenius Medical Care Shares Plunge To 52-Week Low

• Shares of kidney dialysis provider Fresenius Medical Care AG & Co (NYSE: FMS) touched a 52-week low after the company cut its earnings outlook as costs surged and a U.S. staff shortage.

• The company flagged a decline in net income around a high teens percentage range and withdrew its 2025 targets.

• It also expects sales growth at the lower end of the previous forecast range.

• The company reported preliminary Q2 sales of €4.76 billion, +10% Y/Y but almost flat on constant currency.

• Operating income fell 20% to €341 million, while adjusted operating income was up 3% to €445 million.

• Adjusted Net income remained flat at €225 million.

• The company expects pressures from the U.S. labor market to persist in the year's second half.

• It said it no longer expected to achieve organic revenue growth in North American health care services this year.

• New CEO Carla Kriwet will start by October. Rice Powell will step down as CEO effective September 30.

• Price Action: FMS shares are down 14.3% at $19.28 during the market session on the last check Thursday.

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