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DaVita (DVA) Earnings Miss Estimates, Revenues Beat in Q1
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DaVita Inc. (DVA - Free Report) reported first-quarter 2017 adjusted operating earnings of 79 cents per share that missed the Zacks Consensus Estimate of 82 cents. Also, earnings declined from 92 cents in the year-ago quarter.
Total revenue increased from $3.58 billion year over year to approximately $3.70 billion and beat the Zacks Consensus Estimate of $3.69 billion.
Stock Performance
The price performance of the stock was favorable in the last three months. DaVita registered a return of 7.27%, outperforming the Zacks classified Medical - Outpatient and Home Healthcare sub-industry’s gain of almost 2.69%.
Segment Update
Dialysis and Related Lab Services
Total operating revenue during the first quarter was approximately $2.27 billion, up from $2.23 billion in the year-ago quarter. However, operating income was down from $440 million in the year-ago quarter to $415 million.
Davita Medical Group (DMG)
Total operating revenue during the first quarter was $1.09 billion, up from $989 million in the year-ago quarter. Also, the segment’s adjusted operating income came in at $12 million versus the prior-year’s quarter loss of $57 million.
DaVita HealthCare Partners Inc. Price, Consensus and EPS Surprise
Total cash and cash equivalents of DaVita declined to $1.47 billion as of Mar 31, 2017 from $913 million as of Dec 31, 2016. Cash generated from operations in the reported quarter was $865.2 million compared with $429.0 million in the year-ago quarter. As of Mar 31, 2017, DaVita’s long-term debt was $8.92 billion, down from $8.95 billion at year-end 2016.
Guidance
Management projected DaVita’s consolidated operating income for 2017 in the range of $1.635–$1.775 billion. The company expects operating income of $1.525–$1.625 billion for Kidney Care. Operating income for DMG is now anticipated in the range of $110–$150 million. Operating cash flow projection for 2017 is expected at $1.750–$1.950 billion.
Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a solid one-year return of roughly 32.8%.
Sunshine Heart posted a positive earnings surprise of 58.24% in the last reported quarter. The stock recorded a stellar EPS growth rate (last 3–5 years of actual earnings) of almost 22%.
Neovasc saw a stellar gain of 14% over the last three months. The company projects sales growth of 102.88% for the current year.
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DaVita (DVA) Earnings Miss Estimates, Revenues Beat in Q1
DaVita Inc. (DVA - Free Report) reported first-quarter 2017 adjusted operating earnings of 79 cents per share that missed the Zacks Consensus Estimate of 82 cents. Also, earnings declined from 92 cents in the year-ago quarter.
Total revenue increased from $3.58 billion year over year to approximately $3.70 billion and beat the Zacks Consensus Estimate of $3.69 billion.
Stock Performance
The price performance of the stock was favorable in the last three months. DaVita registered a return of 7.27%, outperforming the Zacks classified Medical - Outpatient and Home Healthcare sub-industry’s gain of almost 2.69%.
Segment Update
Dialysis and Related Lab Services
Total operating revenue during the first quarter was approximately $2.27 billion, up from $2.23 billion in the year-ago quarter. However, operating income was down from $440 million in the year-ago quarter to $415 million.
Davita Medical Group (DMG)
Total operating revenue during the first quarter was $1.09 billion, up from $989 million in the year-ago quarter. Also, the segment’s adjusted operating income came in at $12 million versus the prior-year’s quarter loss of $57 million.
DaVita HealthCare Partners Inc. Price, Consensus and EPS Surprise
DaVita HealthCare Partners Inc. Price, Consensus and EPS Surprise | DaVita HealthCare Partners Inc. Quote
Financial Update
Total cash and cash equivalents of DaVita declined to $1.47 billion as of Mar 31, 2017 from $913 million as of Dec 31, 2016. Cash generated from operations in the reported quarter was $865.2 million compared with $429.0 million in the year-ago quarter. As of Mar 31, 2017, DaVita’s long-term debt was $8.92 billion, down from $8.95 billion at year-end 2016.
Guidance
Management projected DaVita’s consolidated operating income for 2017 in the range of $1.635–$1.775 billion. The company expects operating income of $1.525–$1.625 billion for Kidney Care. Operating income for DMG is now anticipated in the range of $110–$150 million. Operating cash flow projection for 2017 is expected at $1.750–$1.950 billion.
Zacks Rank & Stocks to Consider
DaVita carries a Zacks Rank #3 (Hold).
Better-ranked medical stocks are Neovasc Inc. , Hologic, Inc. (HOLX - Free Report) and Sunshine Heart Inc . Notably, all the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic has a long-term expected earnings growth rate of 11.33%. The stock has a solid one-year return of roughly 32.8%.
Sunshine Heart posted a positive earnings surprise of 58.24% in the last reported quarter. The stock recorded a stellar EPS growth rate (last 3–5 years of actual earnings) of almost 22%.
Neovasc saw a stellar gain of 14% over the last three months. The company projects sales growth of 102.88% for the current year.
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Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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