Back to top

Image: Bigstock

DaVita (DVA) Beats Earnings and Revenue Estimates in Q2

Read MoreHide Full Article

DaVita Inc. (DVA - Free Report) reported second-quarter 2017 adjusted operating earnings of 92 cents per share that surpassed the Zacks Consensus Estimate of 90 cents. However, earnings declined from $1.01 in the year-ago quarter.

Total revenue increased from $3.72 billion year over year to approximately $3.88 billion and beat the Zacks Consensus Estimate of $3.84 billion.

Segment Update

U.S. Dialysis and Related Lab Services

Total operating revenue during the second quarter was approximately $2.33 billion, up from $2.26 billion in the year-ago quarter. However, operating income was up from $449 million in the prior-year quarter to $450 million.

Davita Medical Group (DMG)

Total operating revenue during the second quarter was $1.20 billion, up from $1.06 billion in the year-ago quarter. Also, the segment’s adjusted operating loss came in at $13 million versus the loss of $102 million in the prior-year quarter.

 

DaVita HealthCare Partners Inc. Price, Consensus and EPS Surprise

 

DaVita HealthCare Partners Inc. Price, Consensus and EPS Surprise | DaVita HealthCare Partners Inc. Quote

Financial Update

Total cash and cash equivalents of DaVita declined to $712.0 million as of Jun 30, from $913.2 million as of Dec 31, 2016. Cash generated from operations in the first half of 2017 was $1.01 billion compared with $945.6 million in the year-ago period. DaVita’s long-term debt was $8.91 billion, down from $8.95 billion at year-end 2016. In the reported quarter, the company repurchased 3.6 million shares of its common stock for $232 million, at an average price of $64.81 per share. The company currently has approximately $445 million outstanding Board authorized share repurchase authorization pending.

Guidance

Management projected DaVita’s consolidated operating income for 2017 in the range of $1.675–$1.775 billion. The company expects operating income of $1.565–$1.625 billion for Kidney Care. Operating income for DMG is now anticipated in the range of $110–$150 million. Operating cash flow projection for 2017 is expected at $1.750–$1.950 billion.

Zacks Rank & Stocks to Consider

DaVita carries a Zacks Rank #4 (Sell).

A few better-ranked medical stocks are Mesa Laboratories, Inc. (MLAB - Free Report) , INSYS Therapeutics, Inc. and Align Technology, Inc. (ALGN - Free Report) . INSYS Therapeutics and Align Technology sport a Zacks Rank #1 (Strong Buy), while Mesa Laboratories carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

INSYS Therapeutics has a long-term expected earnings growth rate of 20%. The stock has gained around 4.7% over the last three months.

Align Technology has an expected long-term adjusted earnings growth of almost 24.1%. The stock has added roughly 24.7% over the last three months.

Mesa Laboratories has a positive earnings surprise of 2.8% for the last four quarters. The stock has added roughly 19.4% over the last six months.

More Stock News: Tech Opportunity Worth $386 Billion in 2017
                                                                                                  
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.

Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
 


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


DaVita Inc. (DVA) - free report >>

Align Technology, Inc. (ALGN) - free report >>

Mesa Laboratories, Inc. (MLAB) - free report >>

Published in