DaVita’s Q2 2018 Earnings Surpass Analysts’ Estimates

A look at DaVita’s Q2 2018 earnings

DaVita (DVA) released its second-quarter earnings after the market closed on August 1. It surpassed Wall Street analysts’ estimates for revenues and EPS and reported non-GAAP EPS of $1.15 on revenues of $2.9 billion. The EPS estimate was $0.97 on revenues of $2.8 billion.

DaVita’s Q2 2018 Earnings Surpass Analysts’ Estimates

The above chart compares the revenues and EPS for DaVita since Q1 2017.

Q2 2018 revenues

DaVita reported revenues of $2.89 billion in Q2 2018, a 6.9% growth YoY (year-over-year) compared to $2.7 billion. Revenues included an 11.1% growth in revenues for US dialysis and related lab services to $2.57 billion, while revenues for other ancillary services and strategic initiatives decreased 17.7% to $318.7 million during the quarter.

Patient service revenues in Q2 2018

  • Medicare and Medicare Advantage revenues increased ~16.2% to $1.53 billion in Q2 2018 compared to $1.31 billion in Q2 2017.
  • Medicaid and Managed Medicaid revenues decreased ~0.6% to $150.3 million in Q2 2018 compared to $151.3 million in Q2 2017.
  • Other government revenues increased ~28.4% to $196.9 million in Q2 2018 compared to $153.3 million in Q2 2017.
  • Commercial revenues increased ~4.6% to $815.9 million in Q2 2018 compared to $780.2 million in Q2 2017.

Other revenues in Q2 2018

  • Medicare and Medicare Advantage revenues decreased ~31.7% to $154 million in Q2 2018 compared to $225.5 million in Q2 2017.
  • Medicaid and Managed Medicaid revenues decreased ~15% to $16.2 million in Q2 2018 compared to $19 million in Q2 2017.
  • Commercial revenues decreased ~36.6% to $17 million in Q2 2018 compared to $26.8 million in Q2 2017.
  • Other revenues decreased ~18.7% to $39.9 million in Q2 2018 compared to $49.2 million in Q2 2017.

DaVita eliminated its intersegment revenues of $29.3 million in Q2 2018.

The Health Care Select Sector SPDR ETF (XLV) holds 0.3% in DaVita (DVA), 0.3% in Perrigo (PRGO), 0.3% in Incyte (INCY), and 0.6% in Mylan (MYL).