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A month has gone by since the last earnings report for DaVita HealthCare (DVA). Shares have lost about 4.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is DaVita HealthCare due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
DaVita Earnings Beat Estimates in Q2, Revenues Miss
DaVita Inc. reported second-quarter 2020 adjusted earnings per share of $1.95, beating the Zacks Consensus Estimate of $1.29 by 51%. The bottom line also reflects a significant 59.8%improvement from the year-ago quarter figure.
Total revenues in the quarter rose 1.4% year over year to $2.88 billion, missing the Zacks Consensus Estimate by 1.1%.
Segment Details
Net dialysis and related lab patient service revenues in the second quarter totaled $2.76 billion, up 1.1% on a year-over-year basis. Other revenues were $121.8 million, up 2.4% from the year-ago quarter’s figure.
Per management, total U.S. dialysis treatments for the second quarter were 7,570,908, or an average 97,063treatments per day. This represents a per-day increase of 0.7% on a year-over-year basis.
Also, as of Jun 30, 2020 the company provided dialysis services to a total of approximately 236,800patients at 3,082 outpatient dialysis centers, of which 2,795 centers were located in the United States and 287centers in 10 other countries.
During the quarter, DaVita opened a total of 28new dialysis centers and acquired one in the country.It also took over three dialysis centers and opened two outside of the United States . However, during the second quarter, the company also closed six dialysis centers in the United States.
Margin
Total operating expenses and charges amounted to $2.47 billion, compared with $2.38 billion in the year -ago period.
Adjusted operating income of $461.2 million fell 0.9% from the prior-year quarter. Adjusted operating margin came in at 16%, down 20 basis points (bps) from the year-ago quarter.
Financial Condition
DaVita exited the second quarter with cumulative net cash from operating activities of $1.01 billion compared with $751.1 million in the year-ago quarter.
Guidance
DaVita has reaffirmed the 2020 revenue range between $11.50 billion and $11.70 billion. The Zacks Consensus Estimate for the same is pegged at $11.68 billion.
Adjusted EPS projection has been updated to the range of $6.25-$6.75 compared with the previously-issued $5.75-6.25. The Zacks Consensus Estimate for the same stands at $6.13.