Dialysis provider DaVita Inc. (NYSE:DVA) will be reporting earnings this Monday after the bell. Here’s what you need to know.
DaVita met analysts’ revenue expectations last quarter, reporting revenues of $3.42 billion, up 4.8% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ full-year EPS guidance estimates.
Is DaVita a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting DaVita’s revenue to grow 6.4% year on year to $3.51 billion, improving from the 4.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.19 per share.
DaVita Total Revenue
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. DaVita has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.2% on average.
Looking at DaVita’s peers in the healthcare providers & services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. HCA Healthcare delivered year-on-year revenue growth of 6.7%, missing analysts’ expectations by 1%, and UnitedHealth reported revenues up 12.3%, in line with consensus estimates. HCA Healthcare traded up 4% following the results while UnitedHealth was down 16.5%.
Read our full analysis of HCA Healthcare’s results here and UnitedHealth’s results here.
Investors in the healthcare providers & services segment have had steady hands going into earnings, with share prices up 1.1% on average over the last month. DaVita is down 4.3% during the same time and is heading into earnings with an average analyst price target of $143 (compared to the current share price of $109.31).
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