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What's in the Cards for DaVita (DVA)This Earnings Season?
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DaVita Inc. (DVA - Free Report) is scheduled to release first-quarter 2020 results on May 5, after market close.
In the last reported quarter, the company delivered a positive earnings surprise of 12.1%. It has an average positive surprise of 10.8% for the trailing four quarters.
Let’s take a look at how things are shaping up prior to this announcement.
What do the Q1 Estimates Say?
For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $2.84 billion, indicating a rise of 3.4% from the year-ago quarter. The same for the earnings per share (EPS) is pinned at $1.46, suggesting 60.4% growth from the year-ago reported figure.
Factors at Play
DaVita Kidney Care focuses on setting global standards for clinical, social and operational practices in kidney care. Robust performance within net dialysis and related lab patient service segment are likely to have contributed to the company’s top line in the soon-to-be-reported quarter.
However, due to the impact of the coronavirus pandemic which intensified around late-February, momentum of non-emergency as well as elective procedural uptakes is likely to have taken a hit. Naturally, revenues within the segment are expected to have been impacted during the first quarter.
Lately, the company has been working with predictive analytics to identify chronic kidney diseases patients with the highest risk of transition to ESRD (End Stage Renal Disease). The company has also been making progress with its nephrology care line, which is a new physician-led entity with around 1,100 nephrologists. This will facilitate the connection of DaVita to the nephrologist practice. These developments are expected to get reflected on first-quarter results.
During the fourth quarter, DaVita opened a total of 31 new dialysis centers in the country. Outside the United States, the company launched three new dialysis centers and acquired seven. This is likely to have had a positive impact on the company’s first-quarter performance.
The company is expected to have gained significantly from calcimimetics in the first quarter, which is likely to have driven adjusted operating income. In fact, for 2020, DaVita expects $40-$70 million of operating income from calcimimetics.
DaVita gains significant part of its revenues from overseas operations and acquisition of dialysis centers abroad. Unfavorable currency movements are likely to have impacted the company’s international sales during the first quarter of 2020.
What Our Quantitative Model Suggests
Per our proven model, a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here as you will see.
Earnings ESP: DaVita has an Earnings ESP of -3.43%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: It carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this time around.
Aphria Inc. has an Earnings ESP of +35.71% and a Zacks Rank #2.
Exact Sciences Corporation (EXAS - Free Report) has an Earnings ESP of +2.28% and a Zacks Rank of 2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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What's in the Cards for DaVita (DVA)This Earnings Season?
DaVita Inc. (DVA - Free Report) is scheduled to release first-quarter 2020 results on May 5, after market close.
In the last reported quarter, the company delivered a positive earnings surprise of 12.1%. It has an average positive surprise of 10.8% for the trailing four quarters.
Let’s take a look at how things are shaping up prior to this announcement.
What do the Q1 Estimates Say?
For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $2.84 billion, indicating a rise of 3.4% from the year-ago quarter. The same for the earnings per share (EPS) is pinned at $1.46, suggesting 60.4% growth from the year-ago reported figure.
Factors at Play
DaVita Kidney Care focuses on setting global standards for clinical, social and operational practices in kidney care. Robust performance within net dialysis and related lab patient service segment are likely to have contributed to the company’s top line in the soon-to-be-reported quarter.
However, due to the impact of the coronavirus pandemic which intensified around late-February, momentum of non-emergency as well as elective procedural uptakes is likely to have taken a hit. Naturally, revenues within the segment are expected to have been impacted during the first quarter.
Lately, the company has been working with predictive analytics to identify chronic kidney diseases patients with the highest risk of transition to ESRD (End Stage Renal Disease). The company has also been making progress with its nephrology care line, which is a new physician-led entity with around 1,100 nephrologists. This will facilitate the connection of DaVita to the nephrologist practice. These developments are expected to get reflected on first-quarter results.
DaVita Inc. Price and EPS Surprise
DaVita Inc. price-eps-surprise | DaVita Inc. Quote
During the fourth quarter, DaVita opened a total of 31 new dialysis centers in the country. Outside the United States, the company launched three new dialysis centers and acquired seven. This is likely to have had a positive impact on the company’s first-quarter performance.
The company is expected to have gained significantly from calcimimetics in the first quarter, which is likely to have driven adjusted operating income. In fact, for 2020, DaVita expects $40-$70 million of operating income from calcimimetics.
DaVita gains significant part of its revenues from overseas operations and acquisition of dialysis centers abroad. Unfavorable currency movements are likely to have impacted the company’s international sales during the first quarter of 2020.
What Our Quantitative Model Suggests
Per our proven model, a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here as you will see.
Earnings ESP: DaVita has an Earnings ESP of -3.43%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: It carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this time around.
Aurora Cannabis (ACB - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Aphria Inc. has an Earnings ESP of +35.71% and a Zacks Rank #2.
Exact Sciences Corporation (EXAS - Free Report) has an Earnings ESP of +2.28% and a Zacks Rank of 2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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