The 10-second takeaway
For the quarter ended March 31 (Q1), DaVita beat slightly on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, both revenue and GAAP earnings per share improved significantly.
Margins expanded across the board.
DaVita recorded revenue of $1.87 billion. The 12 analysts polled by S&P Capital IQ predicted a top line of $1.85 billion on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $1.61 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.46. The 14 earnings estimates compiled by S&P Capital IQ forecast $1.45 per share. GAAP EPS of $1.46 for Q1 were 52% higher than the prior-year quarter's $0.96 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 32.3%, 180 basis points better than the prior-year quarter. Operating margin was 17.0%, 240 basis points better than the prior-year quarter. Net margin was 7.5%, 160 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.91 billion. On the bottom line, the average EPS estimate is $1.53.
Next year's average estimate for revenue is $7.68 billion. The average EPS estimate is $6.23.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 249 members rating the stock outperform and 13 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 73 give DaVita a green thumbs-up, and one gives 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 $93.76.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.