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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
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  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

DaVita (DVA) Reports Earnings Tomorrow: What To Expect

DVA Cover Image

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.

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 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).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.

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