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With a market cap of $11.2 billion, DaVita Inc. (DVA) is a healthcare provider focused on kidney dialysis services for patients suffering from chronic kidney failure. The Denver, Colorado-based company is expected to release its Q1 2025 earnings on Thursday, May 1.
Ahead of this event, analysts expect DaVita to post adjusted earnings of $1.75 per share, down a staggering 26.5% from $2.38 per share reported in the same quarter last year. While the company has surpassed Wall Street's bottom-line estimates in three of the past four quarters, it has missed the projections on one other occasion.
Meanwhile, for fiscal 2025, analysts forecast DVA to report an adjusted EPS of $10.76, marking an increase of 11.2% from $9.68 reported in fiscal 2024. Moreover, in fiscal 2026, its earnings are expected to further grow 18.1% year-over-year to $12.17 per share.
Shares of DVA have soared 9.7% over the past 52 weeks, notably outperforming the S&P 500 Index's ($SPX) 5.4% gain and the Health Care Select Sector SPDR Fund’s (XLV) 2.1% decline during the same time frame.
DVA stock prices fell 11.1% in the trading session after the release of its Q4 2024 results on Feb. 13. The company reported revenue of $3.3 billion, up 4.7% year-over-year, primarily driven by seasonal factors such as flu vaccines and other routine fluctuations. Its adjusted EPS came in at $2.24, surpassing Wall Street expectations and marking a 1.4% increase over the estimate.
Although DaVita delivered solid results in the previous quarter, investor sentiment was dampened by its cautious 2025 outlook. The company guided for adjusted operating income of $2.01 billion to $2.16 billion and adjusted EPS between $10.20 and $11.30, which unsettled investor confidence.
Furthermore, analysts' consensus view on DVA is cautious, with a "Hold" rating overall. Among eight analysts covering the stock, one suggests a "Strong Buy," six recommend a "Hold,” and one gives a “Moderate Sell” rating. Its mean price target of $169.14 represents a 20.8% premium to current price levels.
On the date of publication, Aditya Sarawgi 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.
