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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $3.58 bln | $3.51 bln (5 Analysts) |
Q3 Adjusted EPS | Beat | $3.82 | $3.61 (6 Analysts) |
Q3 EPS | $3.40 |
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
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(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.)