Fresenius Medical Care (FMEG.DE) shares fell in early trade on Tuesday, as investors looked past a second-quarter profit beat to focus on a fresh disappointment in U.S. patient volumes and the management's decision to merely confirm, not raise, the full-year guidance.
Shares in the world's largest dialysis provider were down as much as 8.8% by 0600 GMT, among the worst performers on Germany's blue-chip DAX index (.GDAXI) in early Frankfurt trading.
The drop highlights an ambivalence among investors: a headline earnings beat is being overshadowed by signs that the U.S. business, FMC's largest market, is losing momentum, and that a temporary reimbursement tailwind currently flattering profits is set to fade in the second half of the year.
The company's operating income excluding special items was €569 million, up 23% at constant currency and above a consensus of €515 million, while revenue grew 4% at constant currency to €4.86 billion, also topping market forecasts.
"US treatments disappoint again," one trader said, pointing to a second straight quarterly miss on the metric investors watch most closely for signs of demand in FMC's largest market.
U.S. organic treatment growth fell 0.9% in the second quarter, worse than the 0.4% decline analysts had pencilled in, and a deterioration from the first quarter's 0.4% drop.
Adding to the caution, FMC's management has repeatedly flagged that a temporary U.S. Medicare reimbursement boost for new drugs and equipment, known as TDAPA, which lifted first-half earnings, is expected to taper off in the back half of the year.
