Dialysis provider DaVita Inc. (NYSE: DVA) will be announcing earnings results tomorrow afternoon. Here’s what investors should know.
DaVita beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $3.29 billion, up 4.7% year on year. It was a slower quarter for the company, with a significant miss of analysts’ full-year EPS guidance estimates and sales volume in line with analysts’ estimates.
Is DaVita a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting DaVita’s revenue to grow 4.5% year on year to $3.21 billion, slowing from the 6.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.02 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 a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.8% on average.
Looking at DaVita’s peers in the outpatient & specialty care segment, some have already reported their Q1 results, giving us a hint as to what we can expect. U.S. Physical Therapy delivered year-on-year revenue growth of 18.1%, beating analysts’ expectations by 4.4%, and Encompass Health reported revenues up 10.6%, topping estimates by 1.7%. U.S. Physical Therapy’s stock price was unchanged after the resultswhile Encompass Health was up 11.8%.
Read our full analysis of U.S. Physical Therapy’s results here and Encompass Health’s results here.
Investors in the outpatient & specialty care segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. DaVita is down 5.1% during the same time and is heading into earnings with an average analyst price target of $164.57 (compared to the current share price of $143.15).
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