DaVita Inc. DVA reported first-quarter 2019 adjusted earnings per share (EPS) of 91 cents, missing the Zacks Consensus Estimate of 95 cents. However, the figure declined 13.3% on a year-over-year basis.
Total revenues in the quarter declined 2.8% year over year to $2.74 billion, missing the Zacks Consensus Estimate of $2.82 billion.
First-quarter adjusted operating income totaled $382 million, down 7.1% year over year.
DaVita Inc. Price, Consensus and EPS Surprise
DaVita Inc. Price, Consensus and EPS Surprise | DaVita Inc. Quote
This Zacks Rank #4 (Sell) company reports through two main segments — Net dialysis and related lab patient service revenues and Other revenues.
Net dialysis and related lab patient service revenues in the first quarter totaled $2.63 billion, up 0.5% on a year-over-year basis. Other revenues were $113.4 million, significantly down from the year-ago quarter’s $232.8 million.
Per management, total U.S. dialysis treatments for the first quarter was 7,297,460, or 95,267 treatments per day, representing a day’s increase of 2.9% over first-quarter 2018.
Moreover, the company provided dialysis services at 2,932 outpatient dialysis centers, of which 2,689 centers were located in the United States and 243 centers in nine countries outside the United States.
U.S. dialysis and related lab services revenues grossed $2.55 billion, down 3.3% from the prior-year quarter. International dialysis patient service and other revenues totaled $120 million, up 3.2% year over year.
For investors’ notice, the company is on track to divest its major segment — DaVita Medical Group (DMG) — to Optum, a subsidiary of UnitedHealth Group Inc. Notably, the purchase price has been reduced to $4.3 billion from $4.9 billion. This transaction is subject to regulatory approvals and other customary closing conditions. The operations of DMG business have been reported as discontinued.
DaVita exited the first quarter with operating cash flow of $141 million.
For 2019, DaVita continues to expect operating income at the band of $1.54 billion to $1.64 billion.
Operating cash flow for the year is projected between $1.38 billion and $1.58 billion.
Effective income tax rate on income from continuing operations attributable to the company is projected between 28.5% and 29.5% for 2019.
DaVita ended the first quarter on a dull note. Dialysis services in the United States saw a solid quarter. DaVita’s international dialysis revenues rose year over year in the quarter. The company is on track to acquire more dialysis centers in the United States. Additionally, a recent win against the union-backed ballot in California is indicative of bright prospects.
On the flip side, DaVita U.S. Dialysis revenues were soft in the first quarter. The year-over-year decline in top and bottom line raises concern. Sluggishness in Other business has been another headwind.
Earnings of MedTech Majors at a Glance
Some better-ranked stocks which reported solid results this earning season are Stryker Corporation SYK, DENTSPLY SIRONA XRAY and CONMED Corporation CNMD, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
Stryker delivered first-quarter 2019 adjusted EPS of $1.88, beating the Zacks Consensus Estimate by 2.2%. Revenues of $3.52 billion were in line with the consensus estimate.
DENTSPLY reported adjusted EPS of 49 cents in the first quarter of 2019, beating the Zacks Consensus Estimate of 38 cents. Revenues came in at $946.2 million and surpassed the Zacks Consensus Estimate of $917.1 million.
CONMED posted first-quarter 2019 adjusted EPS of 57 cents, which beat the Zacks Consensus Estimate of 54 cents. Revenues were $218.4 million, surpassing the consensus estimate of $213 million.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Stryker Corporation (SYK) : Free Stock Analysis Report
DaVita Inc. (DVA) : Free Stock Analysis Report
DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report
CONMED Corporation (CNMD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research