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Fresenius Medical (FMS) Q1 Earnings & Sales Lag Estimates

Fresenius Medical Care AG & Co. KGAAFMS reported adjusted earnings of 37 cents per American Depositary Share (ADS) in the first quarter of 2016, missing the Zacks Consensus Estimate by a nickel. However, earnings per ADS increased 8.2% from the year-ago quarter.

Revenues increased 6.2% (9% at constant currency) on a year-over-year basis to $4.21 billion but missed the Zacks Consensus Estimate of $4.22 billion.

Segment Details

Net Healthcare revenues grew 7.3% to $3.41 billion, with significant contribution from the North American market. Dialysis product revenues increased 1.7% to $791 million. On a constant currency basis, revenues generated from dialysis products increased 6%.

By geography, North America revenues rose 10% year over year to $3.04 billion. Revenues from the care Coordination business grew an impressive 20% to $522 million, while organic revenue growth was 17%. Dialysis business grew by 8% in the reported quarter.

EMEA revenues increased 5% to $631 million at constant currency. Product revenues increased more than 5% at constant currency to $330 million on increased sales of bloodlines, products for acute care treatments and hemodialysis solutions and concentrates.

Revenues from Asia-Pacific grew 10% at constant currency to $374 million. Net Health Care revenues were $168 million, driven by 6% growth in dialysis treatments. The product business surged more than 16% at constant currency to $206 million, driven by strong sales performance in dialysers, bloodlines, machines and peritoneal dialysis products.

Latin America revenues increased 5% at constant currency to $153 million. Dialysis treatments decreased by 6% and product revenues decreased by 4% at constant currency to $40 million.

Guidance

For 2016, Fresenius Medical estimates revenue growth of 7%-10% at constant currency excluding acquisitions. Net income attributable to shareholders of the company is liekly to increase around 15%-20% in 2016.

Zacks Rank & Key Picks

Currently, Fresenius Medical carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader medical sector are Edwards Lifesciences EW , IRadimed IRMD and Masimo Corp MASI . All the three stocks sport a Zacks Rank #1 (Strong Buy).

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FRESENIUS MED (FMS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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