DaVita HealthCare Partners
The 10-second takeaway
For the quarter ended March 31 (Q1), DaVita HealthCare Partners beat slightly on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share contracted significantly.
Margins shrank across the board.
DaVita HealthCare Partners logged revenue of $2.83 billion. The 12 analysts polled by S&P Capital IQ predicted sales of $2.79 billion on the same basis. GAAP reported sales were 52% 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 $1.84. The 15 earnings estimates compiled by S&P Capital IQ predicted $1.80 per share. Non-GAAP EPS of $1.84 for Q1 were 26% higher than the prior-year quarter's $1.46 per share. GAAP EPS of $0.28 for Q1 were 81% lower than the prior-year quarter's $1.46 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 30.9%, 140 basis points worse than the prior-year quarter. Operating margin was 5.6%, much worse than the prior-year quarter. Net margin was 1.1%, 640 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.86 billion. On the bottom line, the average EPS estimate is $1.81.
Next year's average estimate for revenue is $11.65 billion. The average EPS estimate is $7.46.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 325 members out of 337 rating the stock outperform, and 12 members rating it underperform. Among 94 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give DaVita HealthCare Partners a green thumbs-up, and two 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 $124.73.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.