Earnings Alerts

Fresenius Medical Care (FME) Earnings Beat Estimates with a 22% Rise in 4Q Operating Income

By February 20, 2024 No Comments
  • Fresenius Medical Care A’s 4Q operating income exceeded estimates, reaching EU428 million, a 22% increase year over year.
  • The company’s revenue was EU4.99 billion, a slight decrease of 0.2% year over year.
  • When excluding special items, the operating income was EU555 million, a 13% increase quarter over quarter.
  • Net income was reported at EU188 million.
  • Without special items, net income was EU259 million.
  • The basic earnings per share (EPS) were EU0.64, higher than the estimated EU0.57.
  • Excluding special items, the basic EPS were EU0.88.
  • For the 2023 results, the dividend per share was EU1.19, surpassing the estimated EU1.02.
  • In 2024, the company expects revenue to grow by a low- to mid-single digit percent rate compared to the previous year.
  • Operating income is expected to grow by a mid- to high-teens percent rate compared to the previous year.
  • The expected growth rates for 2024 are at constant currency, excluding special items.
  • The 2023 basis for the revenue outlook is €19.05 billion and for the operating income outlook is €1.54 billion, both numbers are adjusted for the positive impact of the Tricare settlement and the operating business impact from divestments closed by year-end 2023.
  • The company is reaffirming its targets to achieve an operating income margin of 10% to 14% by 2025, excluding impacts from portfolio changes.

Fresenius Medical Care & on Smartkarma

Fresenius Medical Care (FME GR) recently received improved guidance from top independent analyst Tina Banerjee on Smartkarma, an investment research network. In her latest report, Banerjee notes that the company has reported accelerated organic revenue growth of 6% YoY in the second quarter of 2023. This is a strong improvement from previous quarters and is a result of the company’s successful execution of its turnaround plan. The plan has led to improved operating profit, although it is expected to remain flat or slightly decline in 2023.

Banerjee also highlights that Fresenius Medical Care & (FME GR) has achieved visible productivity improvements in its care delivery segment, with a Q2 margin at the lower end of the 2025 target margin band of 10-14%. This is a positive sign for the company’s future performance. Additionally, the company has revised its 2023 operating income target to remain flat or decline by up to a low-single-digit percentage, a significant improvement from its previous target of remaining flat or declining by up to a high-single-digit percentage. This news has been well received by investors and shows that Fresenius Medical Care is on track with its turnaround plan.


A look at Fresenius Medical Care & Smart Scores

FactorScoreMagnitude
Value4
Dividend3
Growth3
Resilience2
Momentum4
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Fresenius Medical Care AG & Co. KGaA is a company that provides services and products for patients who need kidney dialysis. They also offer other medical services such as laboratory testing and home therapy. The company operates globally and is known for their high scores in different areas.

According to the Smartkarma Smart Scores, Fresenius Medical Care scores well in terms of value, dividend, growth, and momentum. This means that the company is financially stable, pays out dividends to its shareholders, has potential for growth, and has a good track record in the market. However, in terms of resilience, the company only received a score of 2 out of 5. This suggests that while Fresenius Medical Care is performing well overall, there may be some risks or challenges that could affect its long-term outlook. Overall, with its high scores in most areas, Fresenius Medical Care seems to have a positive long-term outlook.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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