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DaVita (DVA) to Report Q1 Earnings: What's in the Offing?
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DaVita Inc. (DVA - Free Report) is scheduled to release first-quarter 2021 results on May 4, after market close.
In the last reported quarter, the company witnessed an earnings miss of 9.7%. Its bottom line surpassed estimates in the remaining three tailing quarters, the average beat being 21.9%.
Let’s take a look at how things are shaping up prior to this announcement.
Q1 Estimates
For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $2.83 billion, indicating a fall of 0.5% from the year-ago quarter’s reported number. The same for earnings per share (EPS) stands at $1.80, suggesting a 1.6% dip from the year-earlier period’s reported figure.
Factors at Play
Robust performance by net dialysis and its related lab patient service segment is likely to have contributed to DaVita’s top line in the soon-to-be-reported quarter.
Of late, the company is working with predictive analytics to identify chronic kidney diseases patients with maximum risk of transition to End Stage Renal Disease (ESRD). Through the fourth quarter of 2020, DaVita Kidney Care segment continued delivering a strong performance with respect to the treatment of Chronic Kidney Disease (CKD) and ESRD, a trend that most likely continued in the first quarter of 2021 as well.
Growth in the ESRD Medicare Advantage customer base through the December quarter is likely to have paved the way for the company to invest further and build additional momentum toward value-based care in the to-be reported quarter.
The company is also steadily making progress with its nephrology care line, which is a new physician-led entity with around 1,100 nephrologists. This, in turn, is expected to have facilitated DaVita’s connection with the nephrologist practice in the first quarter.
DaVita Kidney Care has also been providing support to nephrologist-led organizations like Nephrology Care Alliance (NCA) in their endeavor to treat patients of chronic kidney diseases. Lately, the company has been customizing the care for patients across the kidney care continuum using proprietary systems that it has been developing for years in partnership with the industry leaders.
In March 2021, the company announced the extension of its collaboration with Fresenius Medical Care’s North America wing to use the latter’s NxStage home hemodialysis machines and related technology for patients across the United States. Notably, the agreement backs both companies’ efforts to empower more people living with kidney failure to select home dialysis as an option.
Benefits of these developments are expected to get reflected in first-quarter results.
Moreover, as a result of the pandemic, the company is seeing a consistent uptick in in-center dialysis services, a trend that most likely continued in the to-be reported quarter.
During the final quarter of 2020, DaVita opened a total of 14 dialysis centers and closed seven in the United States. The company also acquired 30 dialysis centers outside the United States during the same period including its foray into a new country, which is the United Kingdom. This momentum is further expected to have continued through the first quarter of 2021.
Acquisition of dialysis centers, being a part of the company’s business strategy, might have also contributed to DaVita’s first-quarter revenues.
However, revenues from calcimimetics were on a declining trajectory through the fourth quarter of 2020, a trend that most likely persisted in the March quarter too. Additionally, unfavorable currency movements are likely to have weighed on the company’s international sales in the first quarter.
What Our Quantitative Model Suggests
Our proven model does not predict an earnings beat for DaVita this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat but that is not the case here as you will see below.
Earnings ESP: DaVita has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: DaVita carries a Zacks Rank #3, currently.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.
Stryker Corporation (SYK - Free Report) has an Earnings ESP of +0.11% and is a Zacks #3 Ranked stock, presently.
Zimmer Biomet Holdings (ZBH - Free Report) has an Earnings ESP of +1.92% and is a #3 Ranked player at present.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
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DaVita (DVA) to Report Q1 Earnings: What's in the Offing?
DaVita Inc. (DVA - Free Report) is scheduled to release first-quarter 2021 results on May 4, after market close.
In the last reported quarter, the company witnessed an earnings miss of 9.7%. Its bottom line surpassed estimates in the remaining three tailing quarters, the average beat being 21.9%.
Let’s take a look at how things are shaping up prior to this announcement.
Q1 Estimates
For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $2.83 billion, indicating a fall of 0.5% from the year-ago quarter’s reported number. The same for earnings per share (EPS) stands at $1.80, suggesting a 1.6% dip from the year-earlier period’s reported figure.
Factors at Play
Robust performance by net dialysis and its related lab patient service segment is likely to have contributed to DaVita’s top line in the soon-to-be-reported quarter.
Of late, the company is working with predictive analytics to identify chronic kidney diseases patients with maximum risk of transition to End Stage Renal Disease (ESRD). Through the fourth quarter of 2020, DaVita Kidney Care segment continued delivering a strong performance with respect to the treatment of Chronic Kidney Disease (CKD) and ESRD, a trend that most likely continued in the first quarter of 2021 as well.
Growth in the ESRD Medicare Advantage customer base through the December quarter is likely to have paved the way for the company to invest further and build additional momentum toward value-based care in the to-be reported quarter.
The company is also steadily making progress with its nephrology care line, which is a new physician-led entity with around 1,100 nephrologists. This, in turn, is expected to have facilitated DaVita’s connection with the nephrologist practice in the first quarter.
DaVita Kidney Care has also been providing support to nephrologist-led organizations like Nephrology Care Alliance (NCA) in their endeavor to treat patients of chronic kidney diseases. Lately, the company has been customizing the care for patients across the kidney care continuum using proprietary systems that it has been developing for years in partnership with the industry leaders.
In March 2021, the company announced the extension of its collaboration with Fresenius Medical Care’s North America wing to use the latter’s NxStage home hemodialysis machines and related technology for patients across the United States. Notably, the agreement backs both companies’ efforts to empower more people living with kidney failure to select home dialysis as an option.
Benefits of these developments are expected to get reflected in first-quarter results.
DaVita Inc. Price and EPS Surprise
DaVita Inc. price-eps-surprise | DaVita Inc. Quote
Moreover, as a result of the pandemic, the company is seeing a consistent uptick in in-center dialysis services, a trend that most likely continued in the to-be reported quarter.
During the final quarter of 2020, DaVita opened a total of 14 dialysis centers and closed seven in the United States. The company also acquired 30 dialysis centers outside the United States during the same period including its foray into a new country, which is the United Kingdom. This momentum is further expected to have continued through the first quarter of 2021.
Acquisition of dialysis centers, being a part of the company’s business strategy, might have also contributed to DaVita’s first-quarter revenues.
However, revenues from calcimimetics were on a declining trajectory through the fourth quarter of 2020, a trend that most likely persisted in the March quarter too. Additionally, unfavorable currency movements are likely to have weighed on the company’s international sales in the first quarter.
What Our Quantitative Model Suggests
Our proven model does not predict an earnings beat for DaVita this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat but that is not the case here as you will see below.
Earnings ESP: DaVita has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: DaVita carries a Zacks Rank #3, currently.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.
AmerisourceBergen has an Earnings ESP of +0.23% and a Zacks Rank of 3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stryker Corporation (SYK - Free Report) has an Earnings ESP of +0.11% and is a Zacks #3 Ranked stock, presently.
Zimmer Biomet Holdings (ZBH - Free Report) has an Earnings ESP of +1.92% and is a #3 Ranked player at present.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>