What to Expect for DaVita’s Q2 2018 Earnings



Analysts’ estimates for DaVita in Q2 2018

DaVita (DVA), which divides its business into two segments, DaVita Kidney Care and DaVita Medical Group, is set to release its Q2 2018 results tomorrow. Analysts expect it to post EPS of $0.97 on revenue of $2.8 billion. The chart below shows DaVita’s EPS and revenue since Q1 2017, as well as analysts’ Q2 2018 estimates.

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Q2 2018 revenue estimates

In the second quarter, DaVita’s revenue is expected to fall 25.8% YoY (year-over-year) to $2.877 billion from $3.877 billion. DaVita Kidney Care, a dialysis service provider to patients with renal diseases and chronic kidney failure, is expected to see higher revenue YoY in Q2 2018 due to the number of US dialysis patients rising. Whereas the DaVita’s patient service revenue is expected to rise YoY in Q2 2018, its other revenue is expected to fall.

Profitability estimates

In the second quarter, analysts expect DaVita’s gross profit margin to expand YoY to 27.6% from 26.2%, and its EBITDA margin to expand to ~18.5% due to lower selling, general, and administrative expenses. DaVita’s net adjusted income is expected to fall YoY to ~$175.97 million from ~$178.7 million. The Health Care Select Sector SPDR ETF (XLV) invests 0.3% of its holdings in DaVita, 10.3% in Johnson & Johnson (JNJ), 3.5% in Medtronic (MDT), and 3.7% in Amgen (AMGN).


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