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DaVita (NYSE:DVA) unveils its next round of earnings this Thursday, February 11. Get prepared with Benzinga's ultimate preview for DaVita's Q4 earnings.
Net Income, Earnings, And Earnings Per Share
Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Wall Street analysts see DaVita reporting earnings of $1.87 per share on sales of $2.93 billion. DaVita reported a per-share profit of $1.86 when it published results during the same quarter last year. Sales in that period totaled $2.90 billion.
Why Analyst Estimates And Earnings Surprises Are Important
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
If the company were to match the consensus estimate when it reports Thursday, EPS would be up 0.54%. Revenue would be up 1.07% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:
Shares of DaVita were trading at $111 as of February 09. Over the last 52-week period, shares are up 30.08%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. DaVita is scheduled to hold the call at 17:00:00 ET and can be accessed here.
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