Fresenius Medical Care
(NYSE: FMS)
shares fell this morning on second-quarter results that came in mixed compared to the consensus forecast.
Shares of FMS were down 2% at $25.33 apiece in early-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — fell by nearly 1%.
The Germany-based dialysis company posted profits of $153.4 million. That amounts to 53¢ per share, on sales of $5.29 billion for the three months ended June 30, 2023.
Wall Street experts expected earnings per share of 31¢, but Fresenius just missed sales expectations of $5.33 billion.
Fresenius Medical Care recorded a 4.8% bottom-line slide on sales growth of 1.4%. The company attributed revenue growth to a favorable impact from the value-based care business, reimbursement rate increases and a favorable payor mix. A negative exchange rate effect partially offset this, according to a news release. The company remains in the midst of a corporate structure overhaul as well.
“The second quarter makes evident that the execution against our strategic plan is fully on track,” Fresenius CEO Helen Giza said. “We are executing on our portfolio optimization, continuing to deliver on our FME25 program and are accelerating our turnaround activities. As expected, we have seen a stabilization of the labor market and of the inflationary environment. Our measures to increase productivity, supported by the targeted clinic closures, are driving a positive development. This gives us the confidence to narrow our operating income guidance range to the upper part for the year.”
Fresenius continues to expect 2023 revenue to grow at a low-to-mid-single-digit percentage range. Based on the company’s first-half performance, the company narrowed its income target range. It now expects operating income to remain flat or decline by up to a low-single-digit percentage rate. It previously expected a high-single-digit rate.