Davita Inc. Earnings: Margins Expand and Profit Climbs

S&P 500 (NYSE:SPY) component Davita Inc. (NYSE:DVA) reported net income above Wall Street’s expectations for the fourth quarter. DaVita operates kidney dialysis centers and provides related lab and ancillary services across the United States.

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Davita Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Davita Inc. rose to $148.1 million ($1.56 per share) vs. $69 million (70 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 12.9% to $1.86 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Davita Inc. reported adjusted net income of $1.58 per share. By that measure, the company beat the mean estimate of $1.48 per share. Analysts were expecting revenue of $1.85 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 9.5% to $1.81 billion in the third quarter. The figure rose 7.9% in the second quarter from the year earlier and climbed 3% in the first quarter from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of $1.45 versus a mean estimate of net income of $1.46 per share.

Net income has increased 14% year over year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed more than twofold from the year earlier quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from $1.45 a share to $1.46 over the last sixty days. For the fiscal year, the average estimate has been unchanged at $5.05 a share.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com