DaVita reports second-quarter earnings

Ahead of an August 1 earnings call, DaVita Inc. has released preliminary second-quarter 2019 financial and operating results and updated guidance for the rest of the year.

The information is being offered in conjunction with a plan to offer shareholders a stock buyback opportunity through August 16, The “Dutch auction” tender offer is for up to $1.2 billion of DaVita common stock at a price per share not less than $53.50 nor greater than $61.50, DaVita said in a press release. The tender offer expires on August 16, unless extended by DaVita or otherwise terminated.

DaVita said it expects operating income for the second quarter of 2019 to be between $460 million and $465 million. Included in the operating income is the company’s expectation of approximately $40 million attributable to the reimbursement for calcimimetics.

In DaVita’s U.S. dialysis and related lab services segment, the company is expected to report second-quarter treatment growth of 2.1%, with 7,520,587 treatments during the quarter. Revenue per treatment of approximately $350, an increase of approximately $1.60 from the first quarter of 2019, was driven by fluctuations in quarterly revenue, partially offset by a decline in revenue from calcimimetics, the company said in the release.

The company saw a cost per treatment decrease of approximately $9 from the first quarter of 2019, driven primarily by reduced calcimimetics expense and reduced labor and benefit expense due to strong productivity.

From the date of the company’s last earnings call on May 7, 2019, through July 17, 2019, DaVita repurchased 6,274,181 shares of its common stock for approximately $350 million at an average cost of $55.78 per share.

Reference:

http://pressreleases.davita.com/2019-07-22-davita-inc-announces-preliminary-second-quarter-2019-results-and-updated-guidance-for-fiscal-year-2019