DaVita Shares Plunge 17% as Earnings Expectations Fall Short

DENVER - DaVita Inc. (NYSE:DVA) shares fell 17% after the company reported third-quarter earnings that missed analyst expectations following the market close on Tuesday.

The kidney dialysis provider reported adjusted earnings of $2.59 per share, below the expected $2.72. Revenue came in slightly above expectations at $3.26 billion compared to the $3.25 billion forecast.

CEO Javier Rodriguez stated, "While continuing to deliver quality care to our patients throughout the care process, we achieved solid financial performance in the third quarter."

During the quarter, DaVita's U.S. dialysis segment generated an operating income of $549 million on revenues of $2.91 billion. The company performed 7.35 million dialysis treatments, reflecting a 0.1% decrease from the previous quarter.

In the third quarter, DaVita repurchased 2.7 million shares at an average price of $147.20 per share. The company ended the quarter with $1.07 billion in cash and cash equivalents.

Looking ahead, DaVita reiterated its adjusted operating income forecast for 2024, expecting it to be between $1.91 billion and $2.01 billion. The company anticipates adjusted diluted earnings per share will range from $9.25 to $10.05.