The 10-second takeaway
For the quarter ended Dec. 31 (Q4), DaVita met expectations on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Margins grew across the board.
DaVita reported revenue of $1.86 billion. The 14 analysts polled by S&P Capital IQ expected a top line of $1.85 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $1.65 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.58. The 16 earnings estimates compiled by S&P Capital IQ forecast $1.49 per share on the same basis. GAAP EPS of $1.57 for Q4 were 121% higher than the prior-year quarter's $0.71 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.8%, 360 basis points better than the prior-year quarter. Operating margin was 17.6%, 220 basis points better than the prior-year quarter. Net margin was 8.0%, 380 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.85 billion. On the bottom line, the average EPS estimate is $1.45.
Next year's average estimate for revenue is $7.68 billion. The average EPS estimate is $6.24.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 240 members out of 253 rating the stock outperform, and 13 members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give DaVita a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DaVita is outperform, with an average price target of $85.72.
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