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Dialysis provider DaVita Inc. (NYSE: DVA)
will be announcing earnings results tomorrow after market close. Here’s what to look for.
DaVita beat analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $3.26 billion, up 4.6% year on year. It was a slower quarter for the company, with a miss of analysts’ EPS estimates.
This quarter, analysts are expecting DaVita’s revenue to grow 3.8% year on year to $3.27 billion, slowing from the 7.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.15 per share.
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 1.7% 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. Encompass Health delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 1.8%, and Centene reported revenues up 3.4%, topping estimates by 4.4%. Encompass Health traded up 1.3% following the results while Centene was down 6.3%.
Investors in the healthcare providers & services segment have had steady hands going into earnings, with share prices flat over the last month. DaVita is up 6.3% during the same time and is heading into earnings with an average analyst price target of $159.48 (compared to the current share price of $172.25).