Corrected: DaVita Q3 revenue beat analyst estimates on increased average reimbursement rates

Davita

Thu 20:19

Corrects second Outlook bullet to say adjusted EPS guidance was raised at lower-end of prior range, not maintained

Overview
US dialysis provider's Q3 revenue and adjusted EPS beat analyst expectations
Company repurchased 0.6 mln shares in Q3 at average $186.21 per share
Q3 results included $62 mln impairment charge related to China business

Outlook
DaVita raises 2026 adjusted operating income guidance to $2.175 bln-$2.25 bln from $2.15 bln-$2.25 bln
Company raises lower-end of 2026 adjusted diluted EPS guidance to $14.30-$15.20 from $14.10-$15.20 
DaVita reiterates 2026 free cash flow outlook of $1.0 bln-$1.25 bln

Result Drivers
REIMBURSEMENT RATES - Co said Q3 revenue was helped by increased average reimbursement rates and improvements in payor mix
PATIENT CARE COSTS - Higher medical supplies expenses drove up patient care costs per treatment in Q3
IMPAIRMENT CHARGE - Co recognized $62 mln non-cash goodwill and other asset impairment charges related to China business in Q3

Company press release: ID:nPnMJqGXa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$3.58 bln
$3.51 bln (5 Analysts)
Q3 Adjusted EPS
Beat
$3.82
$3.61 (6 Analysts)
Q3 EPS
 
$3.40
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the healthcare facilities & services peer group is "buy"
Wall Street's median 12-month price target for DaVita Inc is $220.00, about 19.6% above its October 28 closing price of $183.93
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago

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Oct 29 - US judge blocks Trump limits to Medicaid work requirement exceptions

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)