Fresenius's Q4 Operating Income Hit By COVID-19 Related Headwinds, Targets Earnings Growth In FY22

Fresenius Medical Care AG & Co's 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.