Saturday, May 19, 2012
DVA F1Q12 Earnings 05/02/12 - (Ryan Kennedy)
DaVita Inc. reported positive results for the first quarter of the fiscal year. DVA posted EPS of $1.46 compared to street estimates of $1.45 per share, representing a 48% increase year-over-year. DaVita had revenues of $1.9 billion compared to $1.6 billion, or an increase of 19%. The gains were predominantly driven by increases in the amount of treatments per day, with approximately 68,000 treatments per day, or a 14% increase over the same quarter a year ago. Treatments per day grew by 6% organically, as the firm acquired 28 new treatment centers and opened up an additional 13 centers in the United States. Going forward, management raised guidance for the rest of 2012, and guided operating income from $1.20-1.30 billion to $1.23-1.31 billion. Since the release, the stock has fallen 8% based on broader market movements and Medicare changes which may negatively affect the reimbursement the firm receives.