DaVita Stock Down Post Q3 Earnings Miss Estimates, Revenues Up Y/Y

DaVita Inc. DVA delivered adjusted earnings per share (EPS) of $2.51 in the third quarter of 2025, down 3.1% year over year. The figure missed the Zacks Consensus Estimate by 23.7%.GAAP EPS for the quarter was $2.04, down 18.4% year over year.DaVita’s Revenues in DetailRevenues of $3.42 billion in the third quarter increased 4.8% year over year. The figure topped the Zacks Consensus Estimate by 0.5%.Revenue per treatment in the third quarter of 2025 was $410.6, up 4.1% year over year and 1.5% sequentially. Per management, this was primarily driven by rate increases, higher revenue from phosphate binders and the negative impact of the cyber incident. This was partially offset by a slight decline in payer mix and normal variability.Shares of this company plunged nearly 3.1% in yesterday’s after-market trading.DVA’s Segment DetailsDaVita generates revenues via two sources — Dialysis patient service revenues and Other revenues.The dialysis patient service revenues were $3.29 billion, up 5.1% year over year.Other revenues were $122.1 million, down 2.3% from the year-ago quarter’s figure.Per management, the total U.S. dialysis treatments for the third quarter were 7,242,725 or 91,680 per day, on average. This represents a per-day decrease of 0.4% on a sequential basis. Normalized non-acquired treatment declined 0.6% year over year in the third quarter of 2025.As of Sept. 30, 2025, DaVita provided dialysis services to around 293,200 patients at 3,247 outpatient dialysis centers, of which 2,662 were U.S. centers while 585 were located across 14 other countries.During the third quarter of 2025, the company opened three dialysis centers and closed three in the United States. It also acquired 58 and closed nine dialysis centers outside the United States in the same period.As of Sept. 30, 2025, DaVita had approximately 64,900 patients in risk-based integrated care arrangements in its Integrated Kidney Care business, representing $5.5 billion in annualized medical spend. The company also had an additional 9,400 patients in other integrated care arrangements.DaVita’s Margin DetailsIn the quarter under review, DaVita’s gross profit decreased 2.2% year over year to $1.09 billion. The gross margin contracted 230 basis points (bps) to 31.8%.General & administrative expenses climbed 5.3% year over year to $414.4 million.Adjusted operating profit totaled $517 million, reflecting a 3.4% decrease from the prior-year quarter’s level. Adjusted operating margin in the third quarter contracted 130 bps to 15.1%.DaVita Inc. Price, Consensus and EPS Surprise DaVita Inc. price-consensus-eps-surprise-chart | DaVita Inc. QuoteDVA’s Financial PositionDaVita exited third-quarter 2025 with cash and cash equivalents and short-term investments of $736.5 million compared with $739.4 million at the second-quarter end. Total debt (including the current portion) at the end of third-quarter 2025 was $10.25 billion compared with $10.26 billion at the second-quarter end.Cumulative net cash provided by operating activities at the end of third-quarter 2025 was $1.35 billion compared with $1.47 billion a year ago.During the three months ended Sept. 30, 2025, DVA repurchased 3.3 million shares for $465 million.DaVita’s GuidanceDaVita has updated its adjusted EPS outlook for 2025.Adjusted EPS for the full year is now projected to be in the range of $10.35-$11.15 compared with the previous guidance of $10.20-$11.30. The Zacks Consensus Estimate currently stands at $10.93.Our Take on DVADaVita ended the third quarter of 2025 with mixed results. The uptick in the company’s top line and revenue per treatment was encouraging. The per-day increase in total U.S. dialysis treatments for the third quarter on a sequential basis and solid revenues from dialysis patient service were encouraging. The opening of dialysis centers within the United States and the acquisition of centers overseas were promising.However, the year-over-year decline in the bottom line and normalized non-acquired treatment was disappointing. The contraction of the adjusted operating margin does not bode well for the stock.DaVita’s Zacks Rank and Key PicksDVA has a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the broader medical space are Solventum Corporation SOLV, Boston Scientific Corporation BSX and HealthEquity HQY.Solventum, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 4.1%. SOLV’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.91%. You can see the complete list of today’s Zacks #1 Rank stocks here.Solventum’s shares have gained 8.2% compared with the industry’s 6.2% growth so far this year.Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.1%.Boston Scientific’s shares have gained 13.2% compared with the industry’s 5.6% growth so far this year.HealthEquity, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 21.7%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 11.05%.HealthEquity’s shares have risen 0.6% compared with the industry’s 6.2% growth so far this year.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report DaVita Inc. (DVA): Free Stock Analysis Report HealthEquity, Inc. (HQY): Free Stock Analysis Report Solventum Corporation (SOLV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks