Are You Expecting This from DaVita HealthCare Partners?

Checking expectations

Seth Jayson
Seth Jayson
Feb 11, 2013 at 12:00AM
Other

DaVita HealthCare Partners (NYSE: DVA) is expected to report Q4 earnings on Feb. 14. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict DaVita HealthCare Partners's revenues will increase 30.2% and EPS will grow 0.6%.

The average estimate for revenue is $2.43 billion. On the bottom line, the average EPS estimate is $1.59.

Revenue details
Last quarter, DaVita HealthCare Partners notched revenue of $2.02 billion. GAAP reported sales were 12% higher than the prior-year quarter's $1.81 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $1.50. GAAP EPS of $1.50 for Q3 were 5.6% higher than the prior-year quarter's $1.42 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 33.7%, 50 basis points worse than the prior-year quarter. Operating margin was 16.7%, 80 basis points worse than the prior-year quarter. Net margin was 7.2%, 30 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $8.17 billion. The average EPS estimate is $6.10.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 302 members out of 315 rating the stock outperform, and 13 members rating it underperform. Among 94 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give DaVita HealthCare Partners 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 HealthCare Partners is outperform, with an average price target of $106.07.

Is DaVita HealthCare Partners the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.