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) Q4 Earnings & Revenues Top Estimates, Margins Up
Read MoreHide Full Article
DaVita Inc. (DVA - Free Report) delivered adjusted earnings per share (EPS) of $1.87 in the fourth quarter of 2023, down 36.4% sequentially. However, the figure topped the Zacks Consensus Estimate by 22.2%.
GAAP EPS from continuing operations for the quarter was $1.62, reflecting a surge of 174.6% year over year.
Full-year adjusted EPS was $8.47, up 28.3% compared with that at the end of the comparable 2022 period. The figure surpassed the Zacks Consensus Estimate by 4.9%.
Revenues in Detail
Revenues of $3.15 billion in the fourth quarter increased 4.6% year over year. The figure surpassed the Zacks Consensus Estimate by 4.8%.
The top line was driven by solid performances of DaVita’s dialysis patient service revenues and Other revenues.
Full-year revenues were $12.14 billion, reflecting a 7.9% improvement from the comparable 2022 period. The figure topped the Zacks Consensus Estimate by 1.2%.
Segment Details
DaVita generates revenues via two sources — Dialysis patient service revenues and Other revenues.
The dialysis patient service revenues were $2.97 billion, up 6% year over year.
Other revenues were $173.5 million, up 53.1% from the year-ago quarter’s figure.
Per management, the total U.S. dialysis treatments for the fourth quarter were 7,254,559 or 92,533 per day, on average. This represents a per-day increase of 0.04% on a sequential basis. Normalized non-acquired treatment growth in the fourth quarter of 2023 was 0.7% year over year.
As of Dec 31, 2023, DaVita provided dialysis services to around 250,200 patients at 3,042 outpatient dialysis centers, of which 2,675 were U.S. centers while 367 were located across 11 other countries.
During the fourth quarter of 2023, the company opened a total of two new dialysis centers and closed 21 dialysis centers in the United States. It also acquired eight dialysis centers and closed one dialysis center outside the United States in the same period.
In the quarter under review, DaVita’s gross profit rose 21.6% to $1.01 billion. The gross margin expanded 363 basis points (bps) to 32%.
General & administrative expenses climbed 5.7% to $401.5 million.
Adjusted operating profit totaled $605.9 million, reflecting a 35.1% uptick from the prior-year quarter’s level. Adjusted operating margin in the fourth quarter expanded 389 bps to 19.3%.
Financial Position
DaVita exited 2023 with cash and cash equivalents and short-term investments of $391.7 million compared with $321.8 million at 2022-end. Total debt (including the current portion) at the end of 2023 was $8.39 billion compared with $8.92 billion at 2022-end.
Cumulative net cash provided by operating activities at the end of 2023 was $2.06 billion compared with $1.56 billion a year ago.
2024 Guidance
DaVita has initiated its adjusted EPS outlook for 2024.
Adjusted EPS for the full year is projected to be in the range of $8.70-$9.80. The Zacks Consensus Estimate currently stands at $8.46.
Our Take
DaVita ended the fourth 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 opening of dialysis centers within the United States and acquiring centers overseas were promising. The expansion of both margins bodes well for the stock. The per-day increase in total U.S. dialysis treatments for the fourth quarter on a sequential basis was another positive.
However, the sequential decline of DaVita’s adjusted EPS was discouraging. The company faced continued labor challenges during the reported quarter, which was further concerning.
Zacks Rank and Key Picks
DaVita currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Cencora, Inc. (COR - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Cardinal Health, Inc. (CAH - Free Report) .
Cencora, carrying a Zacks Rank of 2 (Buy), reported first-quarter fiscal 2024 adjusted EPS of $3.28, beating the Zacks Consensus Estimate by 14.7%. Revenues of $72.25 billion outpaced the consensus mark by 5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cencora has a long-term estimated growth rate of 8.6%. COR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 6.7%.
Elevance Health reported fourth-quarter 2023 adjusted EPS of $5.62, beating the Zacks Consensus Estimate by 1.3%. Revenues of $42.45 billion outpaced the consensus mark by 1.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 3.1%.
Cardinal Health reported second-quarter fiscal 2024 adjusted EPS of $1.82, beating the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion surpassed the Zacks Consensus Estimate by 1.1%. It currently carries a Zacks Rank #2.
Cardinal Health has a long-term estimated growth rate of 15.2%. CAH’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 15.6%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
DaVita (DVA) Q4 Earnings & Revenues Top Estimates, Margins Up
DaVita Inc. (DVA - Free Report) delivered adjusted earnings per share (EPS) of $1.87 in the fourth quarter of 2023, down 36.4% sequentially. However, the figure topped the Zacks Consensus Estimate by 22.2%.
GAAP EPS from continuing operations for the quarter was $1.62, reflecting a surge of 174.6% year over year.
Full-year adjusted EPS was $8.47, up 28.3% compared with that at the end of the comparable 2022 period. The figure surpassed the Zacks Consensus Estimate by 4.9%.
Revenues in Detail
Revenues of $3.15 billion in the fourth quarter increased 4.6% year over year. The figure surpassed the Zacks Consensus Estimate by 4.8%.
The top line was driven by solid performances of DaVita’s dialysis patient service revenues and Other revenues.
Full-year revenues were $12.14 billion, reflecting a 7.9% improvement from the comparable 2022 period. The figure topped the Zacks Consensus Estimate by 1.2%.
Segment Details
DaVita generates revenues via two sources — Dialysis patient service revenues and Other revenues.
The dialysis patient service revenues were $2.97 billion, up 6% year over year.
Other revenues were $173.5 million, up 53.1% from the year-ago quarter’s figure.
Per management, the total U.S. dialysis treatments for the fourth quarter were 7,254,559 or 92,533 per day, on average. This represents a per-day increase of 0.04% on a sequential basis. Normalized non-acquired treatment growth in the fourth quarter of 2023 was 0.7% year over year.
As of Dec 31, 2023, DaVita provided dialysis services to around 250,200 patients at 3,042 outpatient dialysis centers, of which 2,675 were U.S. centers while 367 were located across 11 other countries.
During the fourth quarter of 2023, the company opened a total of two new dialysis centers and closed 21 dialysis centers in the United States. It also acquired eight dialysis centers and closed one dialysis center 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 21.6% to $1.01 billion. The gross margin expanded 363 basis points (bps) to 32%.
General & administrative expenses climbed 5.7% to $401.5 million.
Adjusted operating profit totaled $605.9 million, reflecting a 35.1% uptick from the prior-year quarter’s level. Adjusted operating margin in the fourth quarter expanded 389 bps to 19.3%.
Financial Position
DaVita exited 2023 with cash and cash equivalents and short-term investments of $391.7 million compared with $321.8 million at 2022-end. Total debt (including the current portion) at the end of 2023 was $8.39 billion compared with $8.92 billion at 2022-end.
Cumulative net cash provided by operating activities at the end of 2023 was $2.06 billion compared with $1.56 billion a year ago.
2024 Guidance
DaVita has initiated its adjusted EPS outlook for 2024.
Adjusted EPS for the full year is projected to be in the range of $8.70-$9.80. The Zacks Consensus Estimate currently stands at $8.46.
Our Take
DaVita ended the fourth 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 opening of dialysis centers within the United States and acquiring centers overseas were promising. The expansion of both margins bodes well for the stock. The per-day increase in total U.S. dialysis treatments for the fourth quarter on a sequential basis was another positive.
However, the sequential decline of DaVita’s adjusted EPS was discouraging. The company faced continued labor challenges during the reported quarter, which was further concerning.
Zacks Rank and Key Picks
DaVita currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Cencora, Inc. (COR - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Cardinal Health, Inc. (CAH - Free Report) .
Cencora, carrying a Zacks Rank of 2 (Buy), reported first-quarter fiscal 2024 adjusted EPS of $3.28, beating the Zacks Consensus Estimate by 14.7%. Revenues of $72.25 billion outpaced the consensus mark by 5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cencora has a long-term estimated growth rate of 8.6%. COR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 6.7%.
Elevance Health reported fourth-quarter 2023 adjusted EPS of $5.62, beating the Zacks Consensus Estimate by 1.3%. Revenues of $42.45 billion outpaced the consensus mark by 1.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 3.1%.
Cardinal Health reported second-quarter fiscal 2024 adjusted EPS of $1.82, beating the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion surpassed the Zacks Consensus Estimate by 1.1%. It currently carries a Zacks Rank #2.
Cardinal Health has a long-term estimated growth rate of 15.2%. CAH’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 15.6%.