DaVita Q3 revenue beat analyst estimates on increased average reimbursement rates

Overview

• US dialysis provider's Q3 revenue and adjusted EPS beat analyst expectations

• Company repurchased 0.6 mln shares in Q3 at average $186.21 per share

• Q3 results included $62 mln impairment charge related to China business

Outlook

• DaVita raises 2026 adjusted operating income guidance to $2.175 bln-$2.25 bln from $2.15 bln-$2.25 bln

• Company maintains 2026 adjusted diluted EPS guidance at $14.30-$15.20

• DaVita reiterates 2026 free cash flow outlook of $1.0 bln-$1.25 bln

Result Drivers

• REIMBURSEMENT RATES - Co said Q3 revenue was helped by increased average reimbursement rates and improvements in payor mix

• PATIENT CARE COSTS - Higher medical supplies expenses drove up patient care costs per treatment in Q3

• IMPAIRMENT CHARGE - Co recognized $62 mln non-cash goodwill and other asset impairment charges related to China business in Q3

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy."

• Wall Street's median 12-month price target for DaVita Inc is $220.00, about 19.6% above its October 28 closing price of $183.93

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• Oct 27 - Universal Health warns of possible impact to annual results from Medicaid changes; Q3 revenue slightly beats

• Oct 27 - Centene Q3 revenue tops estimates on Medicare growth

• Oct 29 - US judge blocks Trump limits to Medicaid work requirement exceptions

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)