uploads///woman _

Taking Stock of DaVita’s Performance

By

Dec. 14 2018, Updated 10:16 a.m. ET

DVA overview

DaVita’s (DVA) two major business divisions are Kidney Care (DaVita Kidney Care) and DMG (DaVita Medical Group). The Kidney Care division includes its US dialysis and associated lab services, ancillary services, and strategic initiatives such as pharmacy services, disease management, vascular access services, and clinical research programs.

DaVita’s DMG division provides integrated healthcare delivery and management. In December 2017, DaVita entered into an equity purchase agreement with Optum to sell the division. In this series, we’ll explore DaVita’s financials and valuation along with analysts’ views on its stock.

Article continues below advertisement

DaVita’s top line

In the third quarter, DaVita’s total revenue rose YoY (year-over-year) to $2.85 billion from $2.76 billion. Its net dialysis and related lab patient service revenue rose YoY to $2.66 billion from $2.44 billion. DaVita’s other revenue fell YoY to $188.61 million from $322.85 million.

Revenue forecast

In 2018 and 2019, DaVita is expected to generate revenues of $11.54 billion and $11.99 billion, respectively, compared to its revenue of $15.55 billion in 2017. Peers Quest Diagnostics (DGX) and Tenet Healthcare (THC) are expected to have revenues of $7.58 billion and $18.20 billion, respectively, in 2018. DaVita’s cash per share is $2.60. Quest Diagnostics and Tenet Healthcare have cash per share of $1.91 and $4.74, respectively.

Next, we’ll look at DaVita’s operational performance.

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.