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Dialysis Provider DaVita Slashes FY22 Earnings Outlook Citing Continued Pandemic Impact, Shares Fall

Published 28/10/2022, 15:07
© Reuters. Dialysis Provider DaVita Slashes FY22 Earnings Outlook Citing Continued Pandemic Impact, Shares Fall
DVA
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  • DaVita Inc (NYSE: DVA) reported Q3 consolidated revenues of $2.949 billion, marginally below the consensus of $2.98 billion.
  • The quarter change was primarily due to normal revenue fluctuations in the third quarter, increased hospital inpatient dialysis revenues, and continued migration to Medicare Advantage plans. These increases were partially offset by unfavorable changes in government rates due to the reinstatement of 2% Medicare sequestration.
  • "The third quarter was a challenging quarter for us. Like others in the healthcare community, negative volume trends due to COVID and continued labor pressure impacted our financial performance more than expected," said Javier Rodriguez, CEO.
  • "Looking ahead, I remain confident in our business and ability to leverage our end-to-end kidney care platform as a differentiated asset," he added.
  • Total U.S. dialysis treatments for the third quarter of 2022 were 7,335,825, or an average of 92,859 treatments per day, representing a per day decrease of (0.4)% compared to Q2 of 2022.
  • The company posted adjusted EPS of $1.45, down from $2.35 the prior quarter and below the consensus of $1.77.
  • Guidance: DaVita lowered FY22 adj EPS outlook to $6.20-$6.70, down from prior guidance of $7.50-$8.50 Vs. the consensus of $7.72.
  • Price Action: DVA shares are down 22.75% at $74.64 on the last check Friday.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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