DaVita Inc. Fourth Quarter Earnings Sneak Peek

The Cheat Sheet

S&P 500 component DaVita, Inc. will unveil its latest earnings on Thursday, February 16, 2012. DaVita operates kidney dialysis centers and provides related lab and ancillary services across the United States.

DaVita, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.48 per share, a rise of 31% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 15.3% versus last year to $5.05.

Past Earnings Performance: Last quarter, the company missed estimates by one cent, coming in at profit of $1.45 per share versus a mean estimate of net income of $1.46 per share. In the second quarter, the company beat estimates by 3 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 12.1% in revenue from the year-earlier quarter to $1.85 billion.

Analyst Ratings: Analysts are high on the stock, with 11 analysts rating it as a buy, none rating it as a sell and one rating it as a hold.

A Look Back: In the third quarter, profit rose 13.4% to $135.4 million ($1.42 a share) from $119.4 million ($1.15 a share) the year earlier, but fell short analyst expectations. Revenue rose 9.5% to $1.81 billion from $1.65 billion.

Key Stats:

The increase in profit in the third quarter broke a streak of three consecutive quarters of year-over-year profit decreases. Net income dropped 7.3% in the second quarter, 13.6% in the first quarter and 37.1% in the fourth quarter of the last fiscal year.

For four quarters in a row, revenue has increased. Revenue rose 7.9% in the second quarter from the year earlier, climbed 3% in the first quarter from the year-ago quarter and 5.2% in the fourth quarter of the last fiscal year.

Stock Price Performance: Between December 13, 2011 and February 10, 2012, the stock price had risen $11.21 (15.4%), from $72.76 to $83.97. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 7, 2011, when shares rose for nine straight days, increasing 6.4% (+$5.40) over that span. It saw one of its worst periods between August 15, 2011 and August 22, 2011 when shares fell for six straight days, dropping 7.2% (-$5.37) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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