DaVita HealthCare Partners Inc.
) is set to report fourth-quarter 2013 results on Feb 11. Last
quarter, it posted a 2.08% positive surprise. Let's see how
things are shaping up for this announcement.
Factors this Past Quarter
DaVita has been collaborating with a number of organizations
to enhance operations. Its partnership with Shanghai Yangpu Antu
Hospital in Nov 2012 to form a Renal Dialysis Technology
Collaboration Base at the hospital is expected to strengthen
DAVita's foothold in China. The joint ventures with Arizona
Integrated Physicains and Pacific Pharma Group, LLC are also
likely to bolster company earnings in the fourth quarter.
However, DaVita's debt refinancing continues to keep its
financial leverage at elevated levels. In addition, interest
expenses have significantly increased, aggravating its already
high expenses. These factors might dampen the company's
financials in the fourth quarter of 2013. Moreover, rising
unemployment is compelling people to shift from commercial
insurance schemes to government programs due to wide disparity in
payment rates. Consequently, the company might witness a decline
in operating income in the upcoming period.
Our proven model does not conclusively show that DaVita is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
(Expected Surprise Prediction) and a Zacks Rank #1, 2 or 3 for
this to happen. That is not the case here as you will see
Zero Zacks ESP:
That is because both the Most Accurate estimate and the
Zacks Consensus Estimate are pegged at 98 cents. That is a
difference of 0.00%.
Zacks Rank #2 (Buy):
DaVita's Zacks Rank #2 increases the predictive power of ESP but
when combined with a zero ESP makes surprise prediction
difficult. We caution against stocks with Zacks Rank #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is witnessing negative or zero
estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
), with Earnings ESP of +4.55% and Zacks Rank #3.
), with Earnings ESP of +9.09% and Zacks Rank #3.
Tenet Healthcare Corp.
), with Earnings ESP of +17.65% and Zacks Rank #3.
DAVITA HEALTHCR (DVA): Free Stock Analysis
HEALTHSOUTH CP (HLS): Free Stock Analysis
PHARMERICA CORP (PMC): Free Stock Analysis
TENET HEALTH (THC): Free Stock Analysis
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