DaVita Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component DaVita, Inc. (NYSE:DVA) will unveil its latest earnings on Thursday, November 3, 2011. DaVita operates kidney dialysis centers and provides related lab and ancillary services across the United States.

DaVita, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.46 per share, a rise of 27% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.27. Between one and three months ago, the average estimate moved up. It has risen from $1.29 during the last month. Analysts are projecting profit to rise by 14.2% versus last year to $5.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting net income of $1.17 per share against a mean estimate of profit of $1.14 per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.78 billion in revenue this quarter, a rise of 7.9% from the year ago quarter. Analysts are forecasting total revenue of $6.94 billion for the year, a rise of 7.6% from last year’s revenue of $6.45 billion.

Analyst Ratings: Analysts are bullish on this stock with 12 analysts rating it as a buy, none rating it as a sell and two rating it as a hold.

A Look Back: In the second quarter, profit fell 7.3% to $100 million ($1.03 a share) from $107.9 million ($1.04 a share) the year earlier, but exceeded analyst expectations. Revenue rose 7.9% to $1.71 billion from $1.59 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 3% in the first quarter from the year earlier, climbed 5.2% in the fourth quarter of the last fiscal year from the year-ago quarter and 4.9% in the third quarter of the last fiscal year.

The company has seen net income fall in each of the last three quarters. Net income fell 13.6% in the first quarter and 37.1% in the fourth quarter of the last fiscal year.

Competitors to Watch: Fresenius Medical Care AG & Co. (NYSE:FMS), Hanger Orthopedic Group, Inc. (NYSE:HGR), Continucare Corporation (NYSE:CNU), Universal Health Services, Inc. (NYSE:UHS), NovaMed, Inc. (NASDAQ:NOVA), MedCath Corporation (NASDAQ:MDTH), Dynacq Healthcare, Inc. (NASDAQ:DYII), and U.S. Physical Therapy, Inc. (NASDAQ:USPH).

Stock Price Performance: During September 30, 2011 to October 28, 2011, the stock price had risen $10.03 (16%) from $62.67 to $72.70. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 7, 2011 when shares rose for nine-straight days, rising 6.4% (+$5.40) over that span. It saw one of its worst periods between December 2, 2010 and December 13, 2010 when shares fell for eight-straight days, falling 4.6% (-$3.39) over that span. Shares are up $3.21 (+4.6%) year to date.

(Source: Xignite Financials)

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