By Patrick Costello
Shares of Fresenius fell sharply Friday morning after the German healthcare provider adjusted its midterm guidance and warned it would miss its 2020 group targets late Thursday.
Fresenius said it expects to see mid-single-digit organic sales growth for 2019 compared with earlier forecasts that had group sales increasing at a compounded annual growth rate, or CAGR, of 7.1% to 10.3% through 2020.
Net income for 2019 would remain "broadly stable" compared with 2018, Fresenius said. Its previous forecasts saw group net income increasing at a CAGR of 8.3% to 12.6% through 2020.
At GMT 0910, Fresenius SE was 10% lower at EUR42.56. The company is down nearly 34% in the year to date.
Shares of Fresenius Medical Care, a provider of dialysis products and services that is partially owned by Fresenius SE, also fell Friday after it said 2019 sales growth and net income would be in line with levels recorded in 2018.
Fresenius Medical Care's shares were down 6.9% at EUR63.38.
Bryan Garnier said both companies' shares will remain under pressure until they release more detailed guidance along with full-year earnings Feb. 20.
Fresenius's decision to revise its 2020 targets is "no surprise whatsoever," Berenberg said, adding that the existing 2020 targets had already been rendered "completely meaningless" due to events like the divestiture of Sound and the pending acquisition of NxStage.
The revised forecasts should be taken positively once investors work out the implications, the bank said.
Write to Patrick Costello at Patrick.Costello@dowjones.com.