DaVita (NYSE:DVA) is gearing up to announce its quarterly earnings on Monday, 2025-05-12. Here's a quick overview of what investors should know before the release.
Analysts are estimating that DaVita will report an earnings per share (EPS) of $2.08.
The announcement from DaVita is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Performance in Previous Earnings
In the previous earnings release, the company beat EPS by $0.10, leading to a 11.09% drop in the share price the following trading session.
Here's a look at DaVita's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 2.14 | 2.73 | 2.54 | 1.95 |
| EPS Actual | 2.24 | 2.59 | 2.59 | 2.38 |
| Price Change % | -11.0% | -11.0% | -2.0% | -5.0% |
Tracking DaVita's Stock Performance
Shares of DaVita were trading at $143.63 as of May 08. Over the last 52-week period, shares are up 5.06%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Views on DaVita
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on DaVita.
The consensus rating for DaVita is Neutral, derived from 1 analyst ratings. An average one-year price target of $169.0 implies a potential 17.66% upside.
Analyzing Analyst Ratings Among Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of Hims & Hers Health, Chemed and Option Care Health, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Hims & Hers Health, with an average 1-year price target of $37.11, suggesting a potential 74.16% downside.
- Analysts currently favor an Outperform trajectory for Chemed, with an average 1-year price target of $670.5, suggesting a potential 366.82% upside.
- Analysts currently favor an Outperform trajectory for Option Care Health, with an average 1-year price target of $38.5, suggesting a potential 73.2% downside.
Peers Comparative Analysis Summary
Within the peer analysis summary, vital metrics for Hims & Hers Health, Chemed and Option Care Health are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| DaVita | Neutral | 4.73% | $1.07B | 102.13% |
| Hims & Hers Health | Neutral | 110.67% | $430.69M | 9.65% |
| Chemed | Outperform | 9.79% | $216.41M | 6.24% |
| Option Care Health | Outperform | 16.31% | $263.05M | 3.39% |
Key Takeaway:
DaVita ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.
About DaVita
DaVita is the largest provider of dialysis services in the United States, boasting market share of about 35% when measured by clinics. The firm operates over 3,000 facilities worldwide, mostly in the US, and treats about 280,000 patients globally each year. Government payers dominate US dialysis reimbursement. DaVita receives about two thirds of US sales at government (primarily Medicare) reimbursement rates, with the remainder coming from commercial insurers. While commercial insurers represent only about 10% of US patients treated, they represent nearly all of the profits generated by DaVita in the US dialysis business. Berkshire Hathaway owns about 45% of DaVita.
A Deep Dive into DaVita's Financials
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Positive Revenue Trend: Examining DaVita's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.73% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.
Net Margin: DaVita's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 7.87%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 102.13%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): DaVita's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.49%, the company showcases efficient use of assets and strong financial health.
Debt Management: DaVita's debt-to-equity ratio is notably higher than the industry average. With a ratio of 99.63, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
To track all earnings releases for DaVita visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.