DaVita's Q2 Earnings Call: Our Top 5 Analyst Questions

DaVita’s second quarter was met with a significant negative market reaction, as shares declined sharply despite management delivering results that surpassed Wall Street’s expectations for revenue and adjusted profit. The quarter was marked by two main operational challenges: a decline in treatment volumes and lingering effects from a major cyberattack earlier in the year. CEO Javier Rodriguez noted that while the business managed to deliver on financial commitments, “the strong performance in patient care costs more than offset cyber-related weakness in revenue per treatment and volume.” Management acknowledged that missed treatments and lower admissions—primarily linked to the cyber incident and a severe flu season—were the central factors affecting growth during the period.

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From DaVita’s Q2 Earnings Call

• Andrew Mok (Barclays) asked how missed treatments and admissions are tracking after the cyberattack and how this shapes the outlook for volumes. CFO Joel Ackerman explained that while admissions have normalized, missed treatment rates remain elevated, leading the company to lower its volume growth expectations for the year.
• Philip Chickering (Deutsche Bank) pressed on how DaVita is maintaining operating income guidance despite lower treatment growth and revenue per treatment. Ackerman said cost management, especially in labor, is the key offset, with some temporary international gains.
• Albert J. William Rice (UBS) asked about the timing of revenue recognition in the Integrated Kidney Care business. Ackerman clarified that earlier-than-expected revenue was a pull-forward, not a sign of improved ongoing trends.
• Kevin Mark Fischbeck (Bank of America) questioned why mortality remains elevated and whether it’s structural. Rodriguez and Ackerman attributed this to persistent post-COVID effects across the healthcare sector but stressed ongoing efforts to address it through technology, pharma, and process improvements.
• Ryan M. Langston (TD Cowen) inquired about sustainability of cost improvements and the impact of the cyber incident on future IT spending. Rodriguez said productivity gains are driven by better staff retention and training, and incremental cybersecurity investments are expected to be marginal.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be watching (1) the trajectory of missed treatment and mortality rates, (2) the impact of further labor productivity initiatives and cost control measures on margins, and (3) progress in the adoption of new dialysis technologies and protocols. Developments in reimbursement policy and further integration within the value-based care business will also be important markers for DaVita’s execution.

DaVita currently trades at $132.08, down from $140.96 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).

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