Fresenius (NYSE:FMS) said today that it’s extending the deadline to close the $2 billion buyout of NxStage Medical (NSDQ:NXTM) by 90 days and posted second-quarter earnings that beat the consensus forecast.
The German dialysis giant said it moved the merger deadline from August 7 to Nov. 5, but still expects to close the deal this year.
For the three months ended June 30, Fresenius reported profits of €994 million, or €3.24 per share, on sales of €4.21 billion. The whopping 268.5% bottom-line gain came despite a -5.7% sales slide compared with Q2 2017.
Adjusted to exclude one-time items, earnings per share were €0.89, ahead of the €0.85 consensus.
“In the second quarter, we have seen solid growth resulting in a strong net income increase of 22% at constant currency – excluding the positive impact of the successful and efficient closing of the Sound Inpatient Physicians divestment. On the back of the strong development of our products business and continued growth of our services business, we expect growth to further accelerate in the second half of 2018,” CEO Rice Powell said in prepared remarks.
Fresenius said it expects adjusted profits to grow between 7% and 9% on a constant-currency basis this year, on sales growth of 5% to 7%, excluding the impacts of the NxStage buyout and the SIP sale.
In New York, the news sent FMS shares down -2.2% to $48.76 apiece today in early trading. In Frankfurt, FRE shares were down -3.9% to €66.08.
($1 = €0.853715)