What to Expect From DaVita's Next Quarterly Earnings Report

DaVita Inc. (DVA), headquartered in Denver, Colorado, is a healthcare company specializing in kidney care services, particularly dialysis treatments. With a market cap of $14.04 billion, DaVita serves hundreds of thousands of patients in the U.S. and worldwide. The company is set to release its Q3 earnings after the market closes on Tuesday, Oct. 29.

Ahead of the event, analysts expect DVA to report a profit of $2.76 per share, down 3.2% from $2.85 in the year-ago quarter. The company has consistently beaten Wall Street's earnings estimates in the last four quarters. 

Its adjusted earnings of $2.59 per share for the last quarter surpassed the consensus estimate by 4.9%. Seasonal patient improvements and annual rate increases drove DaVita’s Q2 growth.

For fiscal 2024, analysts expect DVA to report EPS of $9.99, up 18% from $8.47 in fiscal 2023.

DVA stock is up 52.8% on a YTD basis, significantly outperforming the broader S&P 500 Index's ($SPX) 22.5% gains and the SPDR S&P Health Care Services ETF (XHS) 8.5% gain over the same time frame.

DaVita unveiled its Q2 earnings report on Aug. 6, with revenue rising 6.2% to $3.19 billion, beating expectations. Despite this, the stock dipped 2.2%, as concerns loomed over delayed claims processing and potential impacts from GLP-1 weight-loss drugs reducing dialysis demand. However, DVA rebounded, staying in the green during the following sessions, signaling investor confidence in the company’s positive 2024 outlook.

The consensus opinion on DVA stock is cautious, with an overall “Hold” rating. Of eight analysts covering the stock, one advises a “Strong Buy” rating, six indicate a “Hold,” and one suggests a “Moderate Buy.” 

Although DVA currently trades at a premium to the average analyst price target of $157.28, the Street-high target price of $175 suggests the stock could rally as much as 9.3%.

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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.