DaVita (DVA) Reports Q3: Everything You Need To Know Ahead Of Earnings

Dialysis provider DaVita Inc. (NYSE:DVA) will be announcing earnings results this Wednesday after market hours. Here’s what investors should know.

DaVita beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $3.38 billion, up 6.1% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates.

Is DaVita a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting DaVita’s revenue to grow 5.3% year on year to $3.43 billion, in line with the 4.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.17 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. DaVita has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 1.6% on average.

Looking at DaVita’s peers in the healthcare providers & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. HCA Healthcare delivered year-on-year revenue growth of 9.6%, beating analysts’ expectations by 3.3%, and Quest reported revenues up 13.2%, topping estimates by 3.3%. HCA Healthcare traded up 6.4% following the results while Quest was down 4.9%.

Read our full analysis of HCA Healthcare’s results here and Quest’s results here.

There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 7% on average over the last month. DaVita’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $150.50 (compared to the current share price of $129.55).

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