DaVita Inc. reported adjusted diluted earnings per share (EPS) of $2.59 for the third quarter of 2024, which missed Wall Street analysts' average estimate of $2.76 per share. This was primarily attributed to higher patient care costs during the period.
Despite the EPS miss, total revenues for Q3 2024 reached $3.26 billion, marking a 4.6% increase from the third quarter of 2023 and surpassing Street forecasts. Operating income for the quarter was $535 million, an increase from $506 million in the prior quarter.
U.S. dialysis treatments for the quarter were 7.35 million, representing a per day decrease of 0.1% compared to the second quarter of 2024. Revenue per treatment increased to $394.49, while patient care costs per treatment rose to $257.46 due to increased compensation, health benefit expenses, and other direct operating costs.
The company incurred approximately $18.3 million in charges for U.S. dialysis center closures during the third quarter. In August 2024, DaVita strengthened its financial position by issuing $1.00 billion in 6.875% senior notes due 2032, using a portion of the proceeds to prepay $950 million of its Term Loan B-1 maturing in 2026.
DaVita continued its capital allocation strategy by repurchasing 2.7 million shares of common stock for $406 million during Q3 2024, at an average price of $147.20 per share. Subsequent to the quarter, an additional 0.6 million shares were repurchased for $101 million through October 25, 2024.
For the full year 2024, DaVita reaffirmed its adjusted operating income guidance of $1.91 billion to $2.01 billion and adjusted diluted EPS guidance of $9.25 to $10.05. The company also maintained its free cash flow outlook of $950 million to $1.20 billion.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.