Boston, MA 05/05/2014 (wallstreetpr) – Missed Earnings
DaVita HealthCare Partners Inc (NYSE:DVA) reported its 1Q2014 earnings and updated the guidance. For 1Q2014, DaVita recorded an adjusted earnings of $0.85 per share. It is lower than the Zacks Consensus Estimate, which estimated the earnings to be $0.87. When compared to the same quarter last year, the earnings also declined as it was $0.92 last year.
The earnings were down due to the bad performance of the Healthcare Partners segment. However, if amortisation of intangible assets from the acquisitions is considered, DaVita’s net income was $0.97. It was lower than the last year’s same quarter value of $1.03 per share.
Operational financials
DaVita saw increase in the total net revenue, which reached $3.0 4 billion from the last year’s $2.8 billion. The income was similar to the Zacks Consensus Estimate. Several factors, like higher Asian service revenues, helped in this increase over the last year’s financials.
DaVita HealthCare Partners Inc (NYSE:DVA) was also successful in reducing its total operating expenses to $2.6 billion for 1Q2014, which was lower than the last year’s operating expenses of $2.7 billion.
2014 Guidance
DaVita reduced its operating income guidance to $1.840 billion. Previously, it was set at $1.860 billion. The company has increased the operating income guidance for dialysis services and related services. It also increased its total operating cash flow projection for FY 2014 to $1.55 billion from $1.45 billion.
Growth in business
DaVita saw a growth in the total U.S. dialysis treatment, in the 1Q2014. About 6 million or 78K treatments per day happened during this period. It’s an increase of 6.3% per day over the last year same quarter. The non-acquired treatment also reported a growth of 5.5% during the same quarter.
Acquisitions
DaVita acquired one dialysis centre in the U.S. and one dialysis centre outside the U.S. DaVita HealthCare Partners Inc (NYSE:DVA) also started 24 centres in the U.S. and several others outside the U.S.
