Identifying Key Factors Responsible For The 25% Jump In DaVita's Stock This Month

DaVita Inc. is a medical services company providing kidney dialysis services to patients in the United States as well as internationally.
The company’s stock price rallied 25% in the last month primarily on account of strong Q3 results. The company’s EPS surpassed expectations by almost 24% despite its net income figure largely being in line with expectations thanks to a larger-than-expected buy back of shares. Another factor that helped investor confidence is the fact that the company increased its guidance for FY 2020 upwards from the band of $5.00 – $5.50 to $5.25 – $5.75

We step back from these recent swings to review DaVita Inc’s performance over the last few years, as a context for what might come next. Our Interactive dashboard – Why has DaVita Inc.’s (DVA) stock price increased by 25% in the last 30 days? , reviews the near term reasons and the big picture.

 

The context for the last few years:

A closer look At DaVita’s Total Revenues over the last few years and the outlook 

Total Revenues for DaVita moderately increased from $10.9 Bil in 2017 to $11.4 Bil in 2018, an increase of 4.9%.

This compares with Total Revenues growth of:

• -22.0% in 2015
• 7.3% in 2016
• 1.6% in 2017

We expect Total Revenues growth to be 0.1% in 2019.

 

A closer look At DaVita’s Total Expenses over the last few years and the outlook

Total Expense for DaVita increased from $9.48 Bil in 2017 to $10.4 Bil in 2018, an increase of 9.3%.

This compares with Total Expense growth of:

• -19.1% in 2015
• -2.3% in 2016
• 4.3% in 2017

We expect Total Expense growth to be 0.3% in 2019.

 

How does DaVita Inc’s Revenue Growth compare with rivals?

For more information on how DaVitas’ revenue growth compares with Fresenius Medical Care, VeriSign and Moody’s Corporation, view our interactive dashboard analysis.

 

How has  DaVita Inc’s  EBT trended?

EBT for Davita decreased significantly by 25.1% from $1.40 Bil in 2017 to $1.05 Bil in 2018.

We expect EBT to be $1.03 Bil in 2019.

 

How has DaVita Inc’s Net Income and EPS trended?

For more details about DaVitas’ Net Income and EPS, view our interactive dashboard analysis

 

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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