Davita Inc. Earnings Cheat Sheet: Streak of Three Straight Profit Declines Snapped

Wall St. Cheat Sheet

S&P 500 component Davita Inc. reported its results for the third quarter. DaVita operates kidney dialysis centers and provides related lab and ancillary services across the United States.

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Davita Earnings Cheat Sheet for the Third Quarter

Results: Net income for the specialized health services company company rose to $135.4 million ($1.45 per share) vs. $119.4 million ($1.15 per share) in the same quarter a year earlier. This marks a rise of 13.4% from the year earlier quarter.

Revenue: Rose 9.5% to $1.81 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: DVA was about in line with expectations as the mean analyst estimate of $1.46 per share. Analysts were expecting revenue of $1.78 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 7.9% to $1.71 billion in the second quarter. The figure rose 3% in the first quarter from the year earlier and climbed 5.2% in the fourth quarter of the last fiscal year from the year-ago quarter.

Last quarter’s profit increase breaks a streak of three consecutive quarters of year-over-year profit decreases. In the second quarter, net income fell 7.3% from the year earlier, while the figure dropped 13.6% in the first quarter and 37.1% in the fourth quarter of the last fiscal year.

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 3 cents, and in the first quarter, it was ahead by one cent.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to $1.45 per share from $1.36. For the fiscal year, the average estimate has moved up from $4.74 a share to $5 over the last ninety days.

Competitors to Watch: Fresenius Medical Care AG & Co. , National Quality Care, Inc. (NQCI), Hanger Orthopedic Group, Inc. , Continucare Corporation , TLC Vision Corp. (TLCV), Universal Health Services, Inc. , NovaMed, Inc. , MedCath Corporation , Dynacq Healthcare, Inc. , and U.S. Physical Therapy, Inc. .

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(Source: Xignite Financials)

 

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