Shares in Fresenius Medical Care (NYSE:FMS; ETR:FRE) have fallen slightly today after the dialysis-focused medical group missed expectations on Wall Street and saw sales and profits shrink in their first quarter earnings report.
The Bad Homburg vor der Höhe, Germany-based company posted profits of $292.3 million, or $1.09 per share, on sales of $4.8 billion for the three months ended March 31, seeing the bottom-line shrink by 2% while sales shrunk by 12.7% compared with the same period last year.
After adjusting for one-time items, earnings per share were 54¢, just below the 67¢ consensus on Wall Street, where analysts expected too see sales of $4.9 billion.
“On the back of a solid first quarter, which showed healthy organic growth in our businesses, we are heading towards another record year in our company’s history. While managing the shift of the calcimimetic drugs into our clinical operations in the United States, we achieved good organic revenue growth in our dialysis services business and strong organic revenue growth in our products business. This provides a solid basis to deliver on our growth targets for this year. With the planned sale of Sound Inpatient Physicians we have narrowed the focus of our care coordination strategy in the U.S. on areas that provide the highest contribution and the best outcomes for our patients. I am proud to announce that we have just proven once again our commitment to patients. We have received the highest quality rankings in the industry from the U.S. Centers for Medicare and Medicaid Services last week,” CEO Rice Powell said in a prepared statement.
Fresenius updated its outlook for 2018, expecting too see sales growth of between 5% and 7% with net income increasing between 13% and 15% at a constant currency basis. Those targets exclude major transactions such as the company’s planned acquisition of NxStage Medical and divestiture of Sound Physicians.
Shares in Fresenius Medical Care have dropped approximately 2.4% so far today, at $50.20 as of 2:36 p.m. EDT.
Last month, Fresenius said it inked a deal to divest itself of its controlling interest in Sound Inpatient Physician Holdings in a deal worth approximately $2.2 billion (EU €1.8 billion).