Shares of Fresenius saw a notable increase following the release of their fourth-quarter results, which surpassed expectations in both adjusted earnings and organic revenue growth. The German health-care company also raised its cost-savings target for the upcoming year.

Financial Highlights

  • Operating Profit: Fresenius reported an operating profit before special items of 634 million euros for the quarter, representing a 13% increase from the previous year.
  • Revenue: Despite revenue remaining almost unchanged from the previous year at EUR5.68 billion, organic revenue saw a notable growth of 5%.
  • Analyst Expectations: Analysts had estimated an adjusted operating profit of EUR590.7 million, revenue of EUR5.80 billion, and organic growth of 4% for the fourth quarter.

Future Outlook

  • 2024 Projections: Fresenius anticipates organic revenue growth between 3% and 6%, and adjusted operating profit growth between 4% and 8% at constant currency.
  • Cost-Savings Target: The company raised its 2025 cost-savings target to EUR400 million after surpassing its goal for 2023.

Analysts' Perspective

According to Jefferies analysts James Vane-Tempest and Julien Dormois, Fresenius's solid performance in line with expectations provides investors with confidence in the company's recovery. Jefferies estimates Fresenius's organic revenue growth at 5.5% and adjusted operating growth at 11.1%.

The positive results in the fourth quarter indicate a promising future for Fresenius, positioning the company for continued success in the health-care sector.

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