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DaVita (DVA) Q1 Earnings Beat Estimates, Revenues Miss Mark
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Davita Inc. (DVA - Free Report) reported first-quarter 2021 adjusted earnings per share (EPS) of $2.09, beating the Zacks Consensus Estimate of $1.80 by 2.8%. The bottom line also rose 14.2% from the year-ago quarter’s figure.
Revenues
Total revenues in the quarter dipped 0.7% year over year to $2.82 billion and also missed the Zacks Consensus Estimate by 0.2%.
Segment Details
Net dialysis and related lab-patient service revenues in the first quarter totaled $2.71 billion, up 1% on a year-over-year basis. Other revenues were $105.4 million, down 17.6% from the year-ago quarter’s figure.
Per management, total U.S. dialysis treatments for the first quarter were 7,286,934 or 94,636 treatments per day, on average. This represents a per-day decrease of 2.3% on a year-over-year basis.
As of Mar 31, 2021, the company provided dialysis services to a total of around 238,900 patients at 3,150 outpatient dialysis centers, of which 2,827 centers were located in the United States and 323 across 10 countries outside the United States.
During the first quarter of 2021, the company opened a total of 18 new dialysis centers and closed down seven in the United States. It also acquired three dialysis centers, besides opening two and closing three outside the United States in the quarter.
Margin
Total operating expenses and charges amounted to $2.38 billion, up 1% year over year.
Adjusted operating profit of $600.2 million fell 0.3% from the prior-year quarter. Adjusted operating margin came in at 21.3%, up 9 basis points (bps) from the year-ago quarter.
DaVita exited the first quarter of 2021 with cash and cash equivalents of $884.2 million compared with $324.9 million at the end of the fourth quarter of 2020.
Net cash from operating activities of $154.3 million compared with $360.4 million in the year-ago quarter.
2021 Guidance
Adjusted EPS is projected within $8.20-$9, up from the previous guidance of $7.75-$8.75. The Zacks Consensus Estimate for the same stands at $8.28.
Adjusted operating income is anticipated between $1.75 and $1.88, up from the past outlook of $1.68-$1.83 billion.
Our Take
DaVita ended the first quarter on a mixed note. Nonetheless, net dialysis and related lab-patient service revenues increased during the quarter. The acquisition of several dialysis centers overseas is encouraging as well. A solid guidance for 2021 is another positive.
However, foreign exchange headwinds and stiff competition continue to weigh on the company. Increase in operating expenses is another concern.
The Zacks Consensus Estimate for The Cooper Companies’ second-quarter fiscal 2021 revenues is pegged at $685.2 million, suggesting an improvement of 30.5% from the year-ago quarter’s reported figure. The same for EPS stands at $3.04, indicating growth of 101.3% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for Owens & Minor’s first-quarter 2021 adjusted EPS is currently pegged at 97 cents. The consensus estimate for first-quarter revenues stands at $2.29 billion.
The Zacks Consensus Estimate for DENTSPLY SIRONA’s first-quarter 2021 adjusted EPS is pegged at 55 cents. The consensus estimate for revenues stands at $929.3 million.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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DaVita (DVA) Q1 Earnings Beat Estimates, Revenues Miss Mark
Davita Inc. (DVA - Free Report) reported first-quarter 2021 adjusted earnings per share (EPS) of $2.09, beating the Zacks Consensus Estimate of $1.80 by 2.8%. The bottom line also rose 14.2% from the year-ago quarter’s figure.
Revenues
Total revenues in the quarter dipped 0.7% year over year to $2.82 billion and also missed the Zacks Consensus Estimate by 0.2%.
Segment Details
Net dialysis and related lab-patient service revenues in the first quarter totaled $2.71 billion, up 1% on a year-over-year basis. Other revenues were $105.4 million, down 17.6% from the year-ago quarter’s figure.
Per management, total U.S. dialysis treatments for the first quarter were 7,286,934 or 94,636 treatments per day, on average. This represents a per-day decrease of 2.3% on a year-over-year basis.
As of Mar 31, 2021, the company provided dialysis services to a total of around 238,900 patients at 3,150 outpatient dialysis centers, of which 2,827 centers were located in the United States and 323 across 10 countries outside the United States.
During the first quarter of 2021, the company opened a total of 18 new dialysis centers and closed down seven in the United States. It also acquired three dialysis centers, besides opening two and closing three outside the United States in the quarter.
Margin
Total operating expenses and charges amounted to $2.38 billion, up 1% year over year.
Adjusted operating profit of $600.2 million fell 0.3% from the prior-year quarter. Adjusted operating margin came in at 21.3%, up 9 basis points (bps) from the year-ago quarter.
DaVita Inc. Price, Consensus and EPS Surprise
DaVita Inc. price-consensus-eps-surprise-chart | DaVita Inc. Quote
Financial Condition
DaVita exited the first quarter of 2021 with cash and cash equivalents of $884.2 million compared with $324.9 million at the end of the fourth quarter of 2020.
Net cash from operating activities of $154.3 million compared with $360.4 million in the year-ago quarter.
2021 Guidance
Adjusted EPS is projected within $8.20-$9, up from the previous guidance of $7.75-$8.75. The Zacks Consensus Estimate for the same stands at $8.28.
Adjusted operating income is anticipated between $1.75 and $1.88, up from the past outlook of $1.68-$1.83 billion.
Our Take
DaVita ended the first quarter on a mixed note. Nonetheless, net dialysis and related lab-patient service revenues increased during the quarter. The acquisition of several dialysis centers overseas is encouraging as well. A solid guidance for 2021 is another positive.
However, foreign exchange headwinds and stiff competition continue to weigh on the company. Increase in operating expenses is another concern.
Zacks Rank and Key Picks
DaVita currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are The Cooper Companies (COO - Free Report) , Owens & Minor, Inc. (OMI - Free Report) and DENTSPLY SIRONA Inc. (XRAY - Free Report) , each carrying a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for The Cooper Companies’ second-quarter fiscal 2021 revenues is pegged at $685.2 million, suggesting an improvement of 30.5% from the year-ago quarter’s reported figure. The same for EPS stands at $3.04, indicating growth of 101.3% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for Owens & Minor’s first-quarter 2021 adjusted EPS is currently pegged at 97 cents. The consensus estimate for first-quarter revenues stands at $2.29 billion.
The Zacks Consensus Estimate for DENTSPLY SIRONA’s first-quarter 2021 adjusted EPS is pegged at 55 cents. The consensus estimate for revenues stands at $929.3 million.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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