We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
In the last reported quarter, the company’s earnings of $2.36 per share surpassed the Zacks Consensus Estimate by 6.8%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on three occasions and missed the same once, delivering an earnings surprise of 9.1%, on average.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
DaVita has been registering a steady growth of daily treatments over the past few months, after recovering from the pandemic-led impacts. Given the recent mass vaccination drives, we expect the company to have maintained the momentum in the to-be-reported quarter, thereby driving revenues.
During the third-quarter earnings call, DVA confirmed that it recorded higher COVID-led patient mortality compared with the second quarter. Given this, DaVita expects mortality for the to-be-reported quarter to be higher than the second quarter, thereby lowering the rate of treatments per day. During the same call, DaVita further stressed that given continued pandemic-led uncertainties, it expects an increased impact of the pandemic on fourth-quarter results on a sequential basis.
DaVita recorded an improvement in inpatient dialysis revenue per treatment in the last reported quarter, primarily driven by the pandemic. Similar to the third quarter, favorable changes in commercial mix are likely to have continued in the fourth quarter as well. Favorable changes in government rates related to an increase in the Medicare base rate in 2021 and the temporary suspension of Medicare sequestration as well as favorable changes in government mix were caused by shifts to Medicare Advantage plans, increased hospital inpatient revenue per treatment and favorable changes in commercial mix in the last reported quarter. This trend is expected to have continued in the to-be-reported quarter as well, thereby significantly contributing to DaVita’s revenues.
The company developed a patient portal and telemedicine platform that supports remote monitoring and communications between DaVita caregivers and nephrologist partners as well as home patients. Robust adoption of this service is expected to have driven fourth-quarter top-line growth.
DaVita’s expanded home kidney care program including the HomeChoiceClaria Automated Peritoneal Dialysis system, and extended 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 are expected to have been other top-line contributors. These two factors are expected to have significantly boosted the robust adoption of its home dialysis program. The benefits of these developments are expected to get reflected in fourth-quarter results.
In November 2021, DaVita announced favorable study results, which indicated that dialysis patients who received mRNA COVID-19 vaccines had a lower risk of COVID-19 diagnosis post-vaccination and were less likely to be hospitalized or die following breakthrough infection than unvaccinated patients. These raises optimism on the stock.
The Estimate Picture
For fourth-quarter 2021, the Zacks Consensus Estimate of $2.91 billion for total revenues implies an improvement of 0.3% from the prior-year reported figure.
The consensus estimate for earnings per share is pegged at $1.80, implying an uptick of 7.8% from the prior-year reported number.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. This is not the case here as you can see:
Earnings ESP: DaVita has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
AMN Healthcare Services, Inc. (AMN - Free Report) has an Earnings ESP of +10.29% and a Zacks Rank of 1. AMN has an estimated long-term growth rate of 16.2%.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +1.94% and is a Zacks #2 Ranked stock. HSIC has an estimated long-term growth rate of 11.8%.
Henry Schein’s earnings surpassed estimates in the trailing four quarters, with the average being 21.9%.
Allscripts Healthcare Solutions (MDRX - Free Report) has an Earnings ESP of +10.11% and a Zacks Rank of 2, at present. MDRX has an estimated long-term growth rate of 11.1%.
Allscripts’ earnings surpassed estimates in all of the trailing four quarters, with the average being 34.1%.
Image: Bigstock
DaVita (DVA) to Report Q4 Earnings: What's in the Offing?
DaVita Inc. (DVA - Free Report) is scheduled to release fourth-quarter 2021 results on Feb 10, after market close.
In the last reported quarter, the company’s earnings of $2.36 per share surpassed the Zacks Consensus Estimate by 6.8%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on three occasions and missed the same once, delivering an earnings surprise of 9.1%, on average.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
DaVita has been registering a steady growth of daily treatments over the past few months, after recovering from the pandemic-led impacts. Given the recent mass vaccination drives, we expect the company to have maintained the momentum in the to-be-reported quarter, thereby driving revenues.
During the third-quarter earnings call, DVA confirmed that it recorded higher COVID-led patient mortality compared with the second quarter. Given this, DaVita expects mortality for the to-be-reported quarter to be higher than the second quarter, thereby lowering the rate of treatments per day. During the same call, DaVita further stressed that given continued pandemic-led uncertainties, it expects an increased impact of the pandemic on fourth-quarter results on a sequential basis.
DaVita Inc. Price and EPS Surprise
DaVita Inc. price-eps-surprise | DaVita Inc. Quote
DaVita recorded an improvement in inpatient dialysis revenue per treatment in the last reported quarter, primarily driven by the pandemic. Similar to the third quarter, favorable changes in commercial mix are likely to have continued in the fourth quarter as well. Favorable changes in government rates related to an increase in the Medicare base rate in 2021 and the temporary suspension of Medicare sequestration as well as favorable changes in government mix were caused by shifts to Medicare Advantage plans, increased hospital inpatient revenue per treatment and favorable changes in commercial mix in the last reported quarter. This trend is expected to have continued in the to-be-reported quarter as well, thereby significantly contributing to DaVita’s revenues.
The company developed a patient portal and telemedicine platform that supports remote monitoring and communications between DaVita caregivers and nephrologist partners as well as home patients. Robust adoption of this service is expected to have driven fourth-quarter top-line growth.
DaVita’s expanded home kidney care program including the HomeChoiceClaria Automated Peritoneal Dialysis system, and extended 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 are expected to have been other top-line contributors. These two factors are expected to have significantly boosted the robust adoption of its home dialysis program. The benefits of these developments are expected to get reflected in fourth-quarter results.
In November 2021, DaVita announced favorable study results, which indicated that dialysis patients who received mRNA COVID-19 vaccines had a lower risk of COVID-19 diagnosis post-vaccination and were less likely to be hospitalized or die following breakthrough infection than unvaccinated patients. These raises optimism on the stock.
The Estimate Picture
For fourth-quarter 2021, the Zacks Consensus Estimate of $2.91 billion for total revenues implies an improvement of 0.3% from the prior-year reported figure.
The consensus estimate for earnings per share is pegged at $1.80, implying an uptick of 7.8% from the prior-year reported number.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. This is not the case here as you can see:
Earnings ESP: DaVita has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
AMN Healthcare Services, Inc. (AMN - Free Report) has an Earnings ESP of +10.29% and a Zacks Rank of 1. AMN has an estimated long-term growth rate of 16.2%.
AMN Healthcare’s earnings surpassed estimates in the trailing four quarters, with the average being 19.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +1.94% and is a Zacks #2 Ranked stock. HSIC has an estimated long-term growth rate of 11.8%.
Henry Schein’s earnings surpassed estimates in the trailing four quarters, with the average being 21.9%.
Allscripts Healthcare Solutions (MDRX - Free Report) has an Earnings ESP of +10.11% and a Zacks Rank of 2, at present. MDRX has an estimated long-term growth rate of 11.1%.
Allscripts’ earnings surpassed estimates in all of the trailing four quarters, with the average being 34.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.