Management also increased 2019 adjusted operating income guidance for the second time this year, which helped investors have more confidence in the company's future.
DaVita's revenue came in at $2.9 billion, which was only up 2% year over year, but it included about $100 million of headwinds in the year-ago quarter from its pharmacy unit, DaVita Rx, which was sold to Walgreens Boots Alliance.
While revenue was only up modestly, the company was able to cut expenses, which resulted in net income from continuing operations nearly doubling to $150 million from $73 million in the year-ago period.
The increase in adjusted earnings per share (EPS) was even more impressive, soaring to $1.53 from $0.56 in the prior-year quarter. The additional boost came from the company repurchasing almost 30.6 million shares during the quarter.
Management now expects full-year adjusted operating income to land in the range of $1.74 billion to $1.77 billion, up from a previous range of $1.64 billion to $1.7 billion. DaVita also boosted guidance for cash flow from continuing operations, which should provide even more cash to repurchase shares and increase EPS further.
Looking ahead to next year, management now thinks it can earn $5.25 to $5.75 per share from continuing operations on an adjusted basis in 2020. That's an increase from the previous range of $5.00 to $5.50 per share.