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Based in Denver, Colorado, DaVita Inc. (DVA) is a global leader in providing kidney care services. It is renowned for its comprehensive range of treatments and services to improve the quality of life for patients with chronic kidney disease and end-stage renal disease. With a market cap of $11.93 billion, DaVita is recognized for its innovative care models, patient-centered approach, and commitment to clinical excellence. DVA is scheduled to announce its fiscal Q2 earnings results on Thursday, Aug. 1.
Ahead of the event, analysts expect DVA to report a profit of $2.47 per share, up 18.8% from $2.08 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
Its adjusted earnings of $2.38 per share for the last reported quarter surpassed the consensus estimate by 21.4%. Robust dialysis patient service revenues and margin expansion drove the company’s performance.
For fiscal 2024, analysts expect DVA to report EPS of $9.62, up 13.6% from $8.47 in fiscal 2023.
DVA stock is up 29.9% on a YTD basis, outperforming the broader S&P 500 Index's ($SPX) 16.2% gains and the SPDR S&P Health Care Services ETF’s (XHS) 5.3% returns over the same time frame.
On Jul. 15, DaVita shares fell over 3% after reports emerged that the U.S. Federal Trade Commission was investigating the company for allegedly hindering physicians from joining competitors or starting their own practices.
DVA reported Q1 earnings on May 2. Revenue for the period was $3.07 billion, up 6.7% from the previous year. The stock gained 1.8% on the day of the earnings release but declined 5.5% the following day.
The consensus opinion on DVA stock is cautious, with an overall “Hold” rating. Out of seven analysts covering the stock, one advises a “Strong Buy” rating, five suggest a “Hold” rating, and one recommends a “Moderate Sell.” DVA's average analyst price target is $141.64, indicating a potential upside of 4.1% from the current levels.
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.
