FMS Earnings Prediction
The chart below shows how FMS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FMS sees a +2.32% change in stock price 10 days leading up to the earnings, and a +2.79% change 10 days following the report. On the earnings day itself, the stock moves by -1.80%. This data can give you a slight idea of what to expect for the next quarter's release.
FMS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.23B
-2.59%
1.95%
Gross Margin
24.08%
-3.29%
-1.59%
Operating Margin
9.08%
4.49%
6.32%
Net Margin
5.55%
86.24%
10.12%
EPS
0.80
158.06%
15.94%
No Data Available
FMS Earnings Analysis
Fresenius Medical Care AG Corporation (FMS.N) Earnings Conference Call
Positive
Organic Revenue Growth Q3 2024: 1. Organic Revenue Growth: Fresenius Medical Care achieved organic revenue growth of 2% in Q3 2024, supported by both Care Delivery and Care Enablement segments.
Operating Income Improvement: 2. Improved Operating Income: The company reported a 10% increase in operating income, resulting in a higher margin of 9.8%, approaching the 2025 target margin band of 10% to 14%.
FME25 Program Savings: 3. FME25 Program Success: The FME25 program contributed EUR64 million in additional savings in Q3, totaling EUR173 million year-to-date, significantly ahead of the targeted EUR100 million to EUR150 million for 2024.
Cash Flow Recovery Improvement: 4. Strong Cash Flow Recovery: Operating cash flow increased in Q3 due to recovery from previous delays, indicating improved financial health and operational efficiency.
Net Financial Debt Reduction: 5. Decreased Net Financial Debt: The company reduced its net financial debt and improved its net leverage ratio to below the target corridor, achieving a ratio of 2.8 times, demonstrating strong financial discipline.
Negative
Revenue Decline Impact: 1. Declining Revenue: Revenue decreased by 0.7% on an outlook base, negatively affected by divestitures which impacted growth by 230 basis points.
Value-Based Care Challenges: 2. Negative Impact from Value-Based Care: The value-based care business had an adverse impact on business growth of around EUR40 million in the quarter, with an expected negative contribution of EUR20 million to EUR40 million for the year.
Cash Flow Dynamics: 3. Increased Operating Cash Flow but Lower Free Cash Flow: While operating cash flow increased due to recovery from a cyber incident, free cash flow decreased for the first nine months, affected by delayed collections and tax payments.
Negative Pricing Impact: 4. Negative Pricing Effects in China: The implementation of volume-based procurement in China led to a greater negative price impact, which was in line with expectations but still detrimental to overall pricing development.
Earnings Volatility Impact: 5. Volatility from vPPAs: Virtual power purchase agreements had a negative impact of EUR24 million on the corporate line in Q3, contributing to earnings volatility.
FMS FAQs
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FMS Earning Call Sentiment
Fresenius Medical Care AG (FMS) Q3 2024 Earnings Call Transcript
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00:00
00:00
FMS.N
-0.37%Positive
The earnings call reveals strong financial performance with 2% organic revenue growth, 10% operating income increase, and improved margins. The FME25 program exceeded savings targets, and debt reduction efforts are underway. Despite uncertainties in guidance and external factors like hurricanes, the overall sentiment remains positive due to strong operating results, optimistic 2024 growth outlook, and strategic initiatives like value-based care and sustainability efforts. The Q&A section highlighted management's confidence in overcoming challenges, further supporting a positive outlook for the stock price.
