DaVita HealthCare Partners
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), DaVita HealthCare Partners beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share shrank slightly.
Margins dropped across the board.
DaVita HealthCare Partners notched revenue of $2.55 billion. The eight analysts polled by S&P Capital IQ expected to see a top line of $2.43 billion on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $1.86 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 $1.68. The 14 earnings estimates compiled by S&P Capital IQ anticipated $1.59 per share. GAAP EPS of $1.51 for Q4 were 2.6% lower than the prior-year quarter's $1.55 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.3%, 350 basis points worse than the prior-year quarter. Operating margin was 15.6%, 320 basis points worse than the prior-year quarter. Net margin was 6.3%, 170 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.76 billion. On the bottom line, the average EPS estimate is $1.79.
Next year's average estimate for revenue is $11.15 billion. The average EPS estimate is $7.41.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 303 members out of 315 rating the stock outperform, and 12 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 94 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 $123.13.
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