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.
DaVita (DVA) Q3 Earnings & Revenues Top Estimates, Margins Up
Read MoreHide Full Article
DaVita Inc. (DVA - Free Report) delivered adjusted earnings per share (EPS) of $2.85 in the third quarter of 2023, up 37% sequentially. The figure topped the Zacks Consensus Estimate by 48.4%.
GAAP EPS for the quarter was $2.62, reflecting a surge of 131.9% year over year.
Revenues in Detail
Revenues of $3.12 billion in the third quarter were up by 5.9% year over year. The figure surpassed the Zacks Consensus Estimate by 3.7%.
The top line was driven by solid performances of DaVita’s dialysis patient service revenues and Other revenues.
Segment Details
The company’s dialysis patient service revenues were $2.95 billion, up by 3.7% year over year. This figure compares to our dialysis patient service revenues’ third-quarter projection of $2.89 billion.
Other revenues were $169.4 million, up 65.7% from the year-ago quarter’s figure. This figure compares to our third-quarter projection of $111.9 million.
Per management, the total U.S. dialysis treatments for the third quarter were 7,306,948 or 92,493 per day, on average. This represents a per-day decrease of 0.2% on a sequential basis. Normalized non-acquired treatment growth in the third quarter of 2023 was 0.5% year over year.
As of Sep 30, 2023, DaVita provided dialysis services to around 249,100 patients at 3,053 outpatient dialysis centers, of which 2,694 were U.S. centers while 359 were located across 11 other countries.
During the third quarter of 2023, the company opened a total of five new dialysis centers and closed 15 dialysis centers in the United States. It also acquired two dialysis centers and opened four new dialysis centers outside the United States in the same period.
In the quarter under review, DaVita’s gross profit rose 22.1% to $1.05 billion. The gross margin expanded 450 basis points (bps) to 33.8%.
We had projected 31.9% of gross margin for the third quarter.
General & administrative expenses climbed 3.1% to $376.9 million.
Adjusted operating profit totaled $677.1 million, reflecting a 36.1% uptick from the prior-year quarter’s level. Adjusted operating margin in the third quarter expanded 482 bps to 21.7%.
Financial Position
DaVita exited the third quarter of 2023 with cash and cash equivalents and short-term investments of $461.2 million compared with $339.9 million at the second-quarter end. Total debt (including the current portion) at the end of third-quarter 2023 was $8.39 billion compared with $8.69 billion at the second-quarter end.
Cumulative net cash flow from operating activities at the end of third-quarter 2023 was $1.57 billion compared with $1.22 billion a year ago.
2023 Guidance
DaVita has raised its adjusted EPS outlook for 2023.
Adjusted EPS from continuing operations for the full year is now projected to be in the range of $7.80-$8.30, up from the prior outlook of $7.00-$7.80. The Zacks Consensus Estimate currently stands at $7.39.
Our Take
DaVita ended the third quarter of 2023 with better-than-expected results. The uptick in the company’s overall top line and dialysis patient service and Other revenues during the period was impressive. The sequential improvement of DaVita’s bottom line was also encouraging. The opening of several dialysis centers within the United States and overseas was promising. The expansion of both margins bodes well for the stock. DaVita raising its EPS outlook for the year also raises our optimism.
However, the decline in total U.S. dialysis treatments during the quarter due to a decrease in hospital inpatient revenues was discouraging. The company faced continued cost inflationary pressure, a tight labor market and low unemployment during the reported quarter, which was further concerning.
Zacks Rank and Other Key Picks
DaVita currently carries a Zacks Rank #1 (Strong Buy).
A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories (ABT - Free Report) , DexCom, Inc. (DXCM - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
Abbott, carrying a Zacks Rank of 2 (Buy), reported third-quarter 2023 adjusted EPS of $1.14, beating the Zacks Consensus Estimate by 3.6%. Revenues of $10.14 billion outpaced the consensus mark by 3.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 6.8%.
DexCom reported third-quarter 2023 adjusted EPS of 50 cents, beating the Zacks Consensus Estimate by 47.1%. Revenues of $975 million surpassed the Zacks Consensus Estimate by 4%. It currently carries a Zacks Rank #2.
DexCom has a long-term estimated growth rate of 33.6%. DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%.
Integer Holdings reported third-quarter 2023 adjusted EPS of $1.27, beating the Zacks Consensus Estimate by 20.9%. Revenues of $404.7 million surpassed the Zacks Consensus Estimate by 8.7%. It currently carries a Zacks Rank #2.
Integer Holdings has a long-term estimated growth rate of 15.8%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 11.9%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
DaVita (DVA) Q3 Earnings & Revenues Top Estimates, Margins Up
DaVita Inc. (DVA - Free Report) delivered adjusted earnings per share (EPS) of $2.85 in the third quarter of 2023, up 37% sequentially. The figure topped the Zacks Consensus Estimate by 48.4%.
GAAP EPS for the quarter was $2.62, reflecting a surge of 131.9% year over year.
Revenues in Detail
Revenues of $3.12 billion in the third quarter were up by 5.9% year over year. The figure surpassed the Zacks Consensus Estimate by 3.7%.
The top line was driven by solid performances of DaVita’s dialysis patient service revenues and Other revenues.
Segment Details
The company’s dialysis patient service revenues were $2.95 billion, up by 3.7% year over year. This figure compares to our dialysis patient service revenues’ third-quarter projection of $2.89 billion.
Other revenues were $169.4 million, up 65.7% from the year-ago quarter’s figure. This figure compares to our third-quarter projection of $111.9 million.
Per management, the total U.S. dialysis treatments for the third quarter were 7,306,948 or 92,493 per day, on average. This represents a per-day decrease of 0.2% on a sequential basis. Normalized non-acquired treatment growth in the third quarter of 2023 was 0.5% year over year.
As of Sep 30, 2023, DaVita provided dialysis services to around 249,100 patients at 3,053 outpatient dialysis centers, of which 2,694 were U.S. centers while 359 were located across 11 other countries.
During the third quarter of 2023, the company opened a total of five new dialysis centers and closed 15 dialysis centers in the United States. It also acquired two dialysis centers and opened four new dialysis centers outside the United States in the same period.
DaVita Inc. Price, Consensus and EPS Surprise
DaVita Inc. price-consensus-eps-surprise-chart | DaVita Inc. Quote
Margin Details
In the quarter under review, DaVita’s gross profit rose 22.1% to $1.05 billion. The gross margin expanded 450 basis points (bps) to 33.8%.
We had projected 31.9% of gross margin for the third quarter.
General & administrative expenses climbed 3.1% to $376.9 million.
Adjusted operating profit totaled $677.1 million, reflecting a 36.1% uptick from the prior-year quarter’s level. Adjusted operating margin in the third quarter expanded 482 bps to 21.7%.
Financial Position
DaVita exited the third quarter of 2023 with cash and cash equivalents and short-term investments of $461.2 million compared with $339.9 million at the second-quarter end. Total debt (including the current portion) at the end of third-quarter 2023 was $8.39 billion compared with $8.69 billion at the second-quarter end.
Cumulative net cash flow from operating activities at the end of third-quarter 2023 was $1.57 billion compared with $1.22 billion a year ago.
2023 Guidance
DaVita has raised its adjusted EPS outlook for 2023.
Adjusted EPS from continuing operations for the full year is now projected to be in the range of $7.80-$8.30, up from the prior outlook of $7.00-$7.80. The Zacks Consensus Estimate currently stands at $7.39.
Our Take
DaVita ended the third quarter of 2023 with better-than-expected results. The uptick in the company’s overall top line and dialysis patient service and Other revenues during the period was impressive. The sequential improvement of DaVita’s bottom line was also encouraging. The opening of several dialysis centers within the United States and overseas was promising. The expansion of both margins bodes well for the stock. DaVita raising its EPS outlook for the year also raises our optimism.
However, the decline in total U.S. dialysis treatments during the quarter due to a decrease in hospital inpatient revenues was discouraging. The company faced continued cost inflationary pressure, a tight labor market and low unemployment during the reported quarter, which was further concerning.
Zacks Rank and Other Key Picks
DaVita currently carries a Zacks Rank #1 (Strong Buy).
A few other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories (ABT - Free Report) , DexCom, Inc. (DXCM - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
Abbott, carrying a Zacks Rank of 2 (Buy), reported third-quarter 2023 adjusted EPS of $1.14, beating the Zacks Consensus Estimate by 3.6%. Revenues of $10.14 billion outpaced the consensus mark by 3.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 6.8%.
DexCom reported third-quarter 2023 adjusted EPS of 50 cents, beating the Zacks Consensus Estimate by 47.1%. Revenues of $975 million surpassed the Zacks Consensus Estimate by 4%. It currently carries a Zacks Rank #2.
DexCom has a long-term estimated growth rate of 33.6%. DXCM’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.4%.
Integer Holdings reported third-quarter 2023 adjusted EPS of $1.27, beating the Zacks Consensus Estimate by 20.9%. Revenues of $404.7 million surpassed the Zacks Consensus Estimate by 8.7%. It currently carries a Zacks Rank #2.
Integer Holdings has a long-term estimated growth rate of 15.8%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 11.9%.