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 Inc. (DVA - Free Report) recently announced preliminary results for second-quarter 2019, with operating income projected within $460-$465 million.
The company is scheduled to release full financial results on Aug 1, after market close.
Investors Cheer
Following the announcement, shares of this Zacks Rank #3 (Hold) company jumped 4.9% to $58.80 at close.
Notably, DaVita’s impressive guidance for 2019 has boosted investors’ optimism in the stock. The company now expects adjusted operating income between $1.64 billion and $1.70 billion. This reflects a significant increase from the earlier projected range of $1.54 billion to $1.64 billion.
Per management, the substantially raised view is a result of the company's higher profit expectation from calcimimetics.
Quarter Highlights
DaVita expects calcimimetics to have contributed nearly $40 million to its operating income in the second quarter.
Additionally, the company’s U.S. dialysis and related lab services segment is anticipated to have significantly driven the top line.
Hence, the company now expects non-acquired treatment growth of 2.1%, with 7,520,587 treatments in the second quarter. Revenue per treatment is expected at $350, an increase of approximately $1.60 year over year.
For the second quarter, DaVita projects reduced per treatment costs of $9 from the year-ago figure. Per management, this is likely to be driven by reduced calcimimetics expenses and reduced labor and benefit expenses due to strong productivity.
Notably, the recent divestment of the DaVita Medical Group unit to Optum has helped the company focus more on its core Kidney Care business, thereby fortifying its foothold in the global renal care market.
We believe positive performances such as these will boost DaVita’s shares which have slipped 17% in a year, compared with the industry’s 19.4% decline.
Key Picks
Some better-ranked stocks in the broader medical space are DENTSPLY SIRONA (XRAY - Free Report) , AmerisourceBergen Corporation and Stryker Corporation (SYK - Free Report) . While DENTSPLY SIRONA sports a Zacks Rank #1 (Strong Buy), AmerisourceBergen and Stryker carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DENTSPLY SIRONA’s second-quarter 2019 revenues is pegged at $1.03 billion. The same for adjusted earnings per share stands at 62 cents, indicating an increase of 3.3% from the year-ago reported figure.
The Zacks Consensus Estimate for AmerisourceBergen’s third-quarter fiscal 2019 revenues is pegged at $45.2 billion, suggesting 4.8% growth from the prior-year reported figure. The same for adjusted earnings per share stands at $1.63, implying a 5.8% improvement from the year-ago reported number.
The Zacks Consensus Estimate for Stryker’s second-quarter 2019 revenues is pegged at $3.6 billion, indicating an 8.5% rise from the year-ago reported figure. The same for adjusted earnings per share stands at $1.94, suggesting 10.2% growth from the year-earlier quarter's reported figure.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Image: Bigstock
DaVita (DVA) Announces Preliminary Q2 Results, View Upbeat
DaVita Inc. (DVA - Free Report) recently announced preliminary results for second-quarter 2019, with operating income projected within $460-$465 million.
The company is scheduled to release full financial results on Aug 1, after market close.
Investors Cheer
Following the announcement, shares of this Zacks Rank #3 (Hold) company jumped 4.9% to $58.80 at close.
Notably, DaVita’s impressive guidance for 2019 has boosted investors’ optimism in the stock. The company now expects adjusted operating income between $1.64 billion and $1.70 billion. This reflects a significant increase from the earlier projected range of $1.54 billion to $1.64 billion.
Per management, the substantially raised view is a result of the company's higher profit expectation from calcimimetics.
Quarter Highlights
DaVita expects calcimimetics to have contributed nearly $40 million to its operating income in the second quarter.
Additionally, the company’s U.S. dialysis and related lab services segment is anticipated to have significantly driven the top line.
Hence, the company now expects non-acquired treatment growth of 2.1%, with 7,520,587 treatments in the second quarter. Revenue per treatment is expected at $350, an increase of approximately $1.60 year over year.
For the second quarter, DaVita projects reduced per treatment costs of $9 from the year-ago figure. Per management, this is likely to be driven by reduced calcimimetics expenses and reduced labor and benefit expenses due to strong productivity.
Notably, the recent divestment of the DaVita Medical Group unit to Optum has helped the company focus more on its core Kidney Care business, thereby fortifying its foothold in the global renal care market.
DaVita Inc. Price and Consensus
DaVita Inc. price-consensus-chart | DaVita Inc. Quote
Price Performance
We believe positive performances such as these will boost DaVita’s shares which have slipped 17% in a year, compared with the industry’s 19.4% decline.
Key Picks
Some better-ranked stocks in the broader medical space are DENTSPLY SIRONA (XRAY - Free Report) , AmerisourceBergen Corporation and Stryker Corporation (SYK - Free Report) . While DENTSPLY SIRONA sports a Zacks Rank #1 (Strong Buy), AmerisourceBergen and Stryker carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DENTSPLY SIRONA’s second-quarter 2019 revenues is pegged at $1.03 billion. The same for adjusted earnings per share stands at 62 cents, indicating an increase of 3.3% from the year-ago reported figure.
The Zacks Consensus Estimate for AmerisourceBergen’s third-quarter fiscal 2019 revenues is pegged at $45.2 billion, suggesting 4.8% growth from the prior-year reported figure. The same for adjusted earnings per share stands at $1.63, implying a 5.8% improvement from the year-ago reported number.
The Zacks Consensus Estimate for Stryker’s second-quarter 2019 revenues is pegged at $3.6 billion, indicating an 8.5% rise from the year-ago reported figure. The same for adjusted earnings per share stands at $1.94, suggesting 10.2% growth from the year-earlier quarter's reported figure.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>