Fresenius's Q4 Operating Income Hit By COVID-19 Related Headwinds, Targets Earnings Growth In FY22
Fresenius Medical Care AG & Co's FMS +3.98% (Get Free Alerts for FMS) Q4 net income increased 29% Y/Y to €229 million, while quarterly net income was up 23% at constant currency.
Adjusted net income for Q4 declined by 29% to €263 million or down 32% at constant currency, mainly due to the mentioned negative effects on operating income.
Excluding special items, earnings per share declined by 29% to €0.90 from the previous year.
Operating income decreased by 3% to €449 million mainly due to a remeasurement effect on the fair value of investments, higher labor costs, the adverse COVID-19-related net effects, and inflationary materials cost increases.
These effects were only slightly mitigated by an improved U.S. payor mix, in particular, due to an increased number of patients with Medicare Advantage coverage.
Revenue for the fourth quarter increased 6% Y/Y to €4.65 billion, while it was up 3% at constant currency, or 2% organic basis.
Dividend: The Company proposes a dividend of €1.35/share to the Annual General Meeting in May 2022.
Guidance: Fresenius Medical Care expects revenue and net income to grow at low to mid-single-digit percentage rates in FY22.
Fresenius Medical Care confirmed its mid-term targets based on the Company's mid-term strategy. Until 2025 the Company expects compounded annual average increases in the mid-single-digit percentage range for revenue and the high-single-digit percentage range for net income.
Price Action: FMS shares are up 3.20% at $34.46 during the premarket session on the last check Tuesday.
https://www.benzinga.com/news/earnings/ ... th-in-fy22
