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In the last reported quarter, the company’s earnings of $1.61 per share lagged the Zacks Consensus Estimate by 12.9%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on three occasions and lagged the same in one, delivering an earnings surprise of 7.4%, on average.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
During first-quarter 2022 call in May, DaVita confirmed that it had been registering excess patient mortality due to increased magnitude of Omicron cases over the past few months. However, the company recorded lower patient infections and mortality rates in March and April. It also did not see any significant impact from new subvariants. On the back of this, DaVita had been witnessing positive trends in treatment volumes and expects this momentum to have continued in the to-be-reported quarter as well, thereby driving up the overall top line.
DaVita had announced the acquisition of MedSleuth in early January. MedSleuth’s software enables closer partnerships and better coordination between transplant centers, nephrologists and kidney care providers, with all three working together to support the company’s patient transplant journey.
In February, DaVita had announced that according to a DaVita Clinical Research study, dialysis patients who received an adenovirus vector-based COVID-19 vaccine (Johnson & Johnson), were found to have similar rates of breakthrough infection, hospitalization and mortality as dialysis patients who received an mRNA-based vaccine (Pfizer/BioNTech). These developments raise optimism about the stock.
During first-quarter earnings call, DaVita also confirmed that it has expanded the number of nephrologists it is currently working with in value-based care. The company is currently engaged in a new value-based partnership with more than 1,800 nephrologists across the United States, with more than 600 nephrologists using an integrated chronic kidney disease electronic health record. This buoys our optimism on the stock.
DaVita has, however, been facing a tough labor market with increasing labor costs primarily due to higher training costs and inefficient staffing, associated with COVID patients. The company has also been witnessing economic pressures of inflation and supply-channel constraints. These are likely to have weighed on the company’s second-quarter 2022 top line.
The Estimate Picture
For second-quarter 2022, the Zacks Consensus Estimate of $2.93 billion for total revenues calls for an improvement of 0.6% from the prior-year reported figure.
The consensus estimate for earnings per share is pegged at $2.11, indicating a decline of 20.1% from the prior-year reported number.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP has higher chances of beating estimates. This is not the case here, as you can see below.
Earnings ESP: DaVita has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Alkermes plc (ALKS - Free Report) has an Earnings ESP of +300% and a Zacks Rank of 1. ALKS has an estimated long-term growth rate of 25.1%.
STERIS plc (STE - Free Report) has an Earnings ESP of +1.85% and is a Zacks #1 Rank stock. STE has an estimated growth rate of 9.9% for fiscal 2023.
STERIS’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 9.2%.
Glaukos Corporation (GKOS - Free Report) has an Earnings ESP of +2.27% and sports a Zacks Rank of 1 at present. GKOS has an estimated growth rate of 15.2% for 2023.
Glaukos’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 28.7%.
Image: Bigstock
DaVita (DVA) to Report Q2 Earnings: What's in the Offing?
DaVita Inc. (DVA - Free Report) is scheduled to release second-quarter 2022 results on Aug 1, after market close.
In the last reported quarter, the company’s earnings of $1.61 per share lagged the Zacks Consensus Estimate by 12.9%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on three occasions and lagged the same in one, delivering an earnings surprise of 7.4%, on average.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
During first-quarter 2022 call in May, DaVita confirmed that it had been registering excess patient mortality due to increased magnitude of Omicron cases over the past few months. However, the company recorded lower patient infections and mortality rates in March and April. It also did not see any significant impact from new subvariants. On the back of this, DaVita had been witnessing positive trends in treatment volumes and expects this momentum to have continued in the to-be-reported quarter as well, thereby driving up the overall top line.
DaVita had announced the acquisition of MedSleuth in early January. MedSleuth’s software enables closer partnerships and better coordination between transplant centers, nephrologists and kidney care providers, with all three working together to support the company’s patient transplant journey.
In February, DaVita had announced that according to a DaVita Clinical Research study, dialysis patients who received an adenovirus vector-based COVID-19 vaccine (Johnson & Johnson), were found to have similar rates of breakthrough infection, hospitalization and mortality as dialysis patients who received an mRNA-based vaccine (Pfizer/BioNTech). These developments raise optimism about the stock.
DaVita Inc. Price and EPS Surprise
DaVita Inc. price-eps-surprise | DaVita Inc. Quote
During first-quarter earnings call, DaVita also confirmed that it has expanded the number of nephrologists it is currently working with in value-based care. The company is currently engaged in a new value-based partnership with more than 1,800 nephrologists across the United States, with more than 600 nephrologists using an integrated chronic kidney disease electronic health record. This buoys our optimism on the stock.
DaVita has, however, been facing a tough labor market with increasing labor costs primarily due to higher training costs and inefficient staffing, associated with COVID patients. The company has also been witnessing economic pressures of inflation and supply-channel constraints. These are likely to have weighed on the company’s second-quarter 2022 top line.
The Estimate Picture
For second-quarter 2022, the Zacks Consensus Estimate of $2.93 billion for total revenues calls for an improvement of 0.6% from the prior-year reported figure.
The consensus estimate for earnings per share is pegged at $2.11, indicating a decline of 20.1% from the prior-year reported number.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP has higher chances of beating estimates. This is not the case here, as you can see below.
Earnings ESP: DaVita has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Alkermes plc (ALKS - Free Report) has an Earnings ESP of +300% and a Zacks Rank of 1. ALKS has an estimated long-term growth rate of 25.1%.
Alkermes’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 350.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
STERIS plc (STE - Free Report) has an Earnings ESP of +1.85% and is a Zacks #1 Rank stock. STE has an estimated growth rate of 9.9% for fiscal 2023.
STERIS’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 9.2%.
Glaukos Corporation (GKOS - Free Report) has an Earnings ESP of +2.27% and sports a Zacks Rank of 1 at present. GKOS has an estimated growth rate of 15.2% for 2023.
Glaukos’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 28.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.