NYSE$DVA

DaVita HealthCare Partners Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported consolidated revenues of $2.880 billion and diluted earnings per share from continuing operations of $1.62.

DaVita's Q2 2020 results showed a focus on patient and staff safety amidst the COVID-19 pandemic. The company reported consolidated revenues of $2.880 billion, operating income of $410 million, and diluted earnings per share from continuing operations of $1.62.

  • Consolidated revenues reached $2.880 billion.
  • Operating income was $410 million, representing a 14.2% operating margin.
  • Diluted earnings per share from continuing operations were $1.62.
  • The company issued $1.750 billion of 4.625% senior notes to redeem existing 5.125% senior notes.

Headline financials

Total Revenue

$2.88B

Previous: $2.84B+1.3%
EPS (adj)

$1.95

Previous: $1.22+59.8%
U.S. Dialysis Treatments

7.6M

No prior period
U.S. Dialysis Treatment Days

78

No prior period
U.S. Dialysis Avg Treatments per Day

97.1K

Previous: 96.4K+0.7%
U.S. Dialysis Avg Revenue per Treatment

$352.26

No prior period
Capital Expenditures

-$292M

Previous: -$175M-66.6%
Free Cash Flow

-$90.1M

Previous: $98.5M-191.4%
Net Income

$202M

Previous: $274M-26.3%
Operating Income

$410M

Previous: $462M-11.3%
Gross Profit

$2.88B

Previous: $2.84B+1.3%
Cash & Equivalents

$2.93B

Previous: $3.58B-18.1%
Total Assets

$19.3B

Previous: $19.9B-3.1%
Stock-Based Comp

$22.3M

Previous: $16.9M+31.4%

Revenue & EPS history

DaVita · Revenue · Quarterly

$2.88B

Q2 2020+1.3%vs Q2 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

DaVita · $2.8B total across 2 segments · Q2 2020

  • U.S. Dialysis Patient Services
    $2.68B
  • International Dialysis Patient Service
    $129M

Forward guidance

DaVita provided its 2020 guidance with revenue between $11.5 billion and $11.7 billion.

Tailwinds

  • Revenue between $11,500 million and $11,700 million.
  • Adjusted operating income margin between 14.0% and 14.75%.
  • Effective income tax rate on adjusted income from continuing operations attributable to DaVita Inc. between 28.0% and 29.5%.
  • Adjusted diluted net income from continuing operations per share attributable to DaVita Inc. between $6.25 and $6.75.
  • Free cash flow from continuing operations between $800 million and $1,000 million.

Headwinds

  • Significant risks and uncertainties, including those described below, and actual results may vary materially from these forward-looking measures.
  • The widespread impact of the COVID-19 pandemic continues to generate significant risk and uncertainty, and as a result, our future results could vary materially from the guidance provided below.
  • We do not provide guidance for diluted net income from continuing operations per share attributable to DaVita Inc., effective income tax rate on income from continuing operations or free cash flow from continuing operations on a basis consistent with United States generally accepted accounting principles (GAAP) nor a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis because we are unable to predict certain items contained in the GAAP measures without unreasonable efforts.
  • These non-GAAP financial measures do not include certain items, including loss on changes in ownership interests, accruals for legal matters, refinancing charges and foreign currency fluctuations, which may be significant.
  • The guidance for our effective income tax rate on adjusted income from continuing operations attributable to DaVita Inc. also excludes the amount of third party owners' income and related taxes attributable to non-tax paying entities.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.2%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.6%

Avg return

30 days after

54%

39 / 72 earnings

Positive

+14.7%

Q3 2019

Best reaction

-24.5%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.6%+22.2%+22.4%
Q4 2025+11.0%+26.7%+34.9%
Q3 2025-6.0%-5.2%-5.4%
Q1 2025-0.2%+0.7%-4.9%
Q4 2024-11.1%-12.5%-19.0%
Q3 2024-10.1%-9.8%+5.5%
Q2 2024-1.1%+3.6%+9.8%
Q1 2024-3.8%-1.5%+5.3%
Q4 2023+8.0%+6.9%+19.0%
Q3 2023+7.4%+5.1%+33.9%
Q2 2023+6.7%+8.6%+1.0%
Q1 2023+13.8%+5.9%+13.7%
Q4 2022-0.3%-0.3%-8.4%
Q3 2022-24.5%-27.9%-23.6%
Q2 2022+2.7%+1.8%+1.3%
Q1 2022-7.1%-5.0%-12.7%
Q4 2021-1.2%+3.5%-2.6%
Q3 2021-6.9%-6.2%-12.3%
Q2 2021+10.2%+9.7%+10.0%
Q1 2021+2.8%+8.9%+6.0%
Q4 2020-7.4%-8.1%-4.4%
Q3 2020-0.0%+7.7%+27.4%
Q2 2020-4.3%-8.5%-4.8%
Q1 2020+9.6%+7.5%+9.7%
Q4 2019+8.8%+5.7%-8.0%
Q3 2019+14.7%+13.6%+17.9%
Q2 2019+0.4%-1.5%-5.8%
Q1 2019-10.4%-9.8%-19.4%
Q4 2018+1.3%+3.0%-6.7%
Q3 2018+1.3%-1.5%-14.9%
Q2 2018+5.4%+3.9%-1.4%
Q1 2018+4.7%+1.2%+5.9%
Q4 2017+1.8%+0.3%-5.4%
Q3 2017-8.5%-7.4%+13.0%
Q2 2017-9.8%-10.9%-9.6%
Q1 2017-3.8%-5.3%-2.4%
Q4 2016+3.2%+6.2%+4.5%
Q3 2016+1.1%+0.1%+11.1%
Q2 2016-6.0%-10.1%-16.4%
Q1 2016+2.9%
Q4 2015-1.7%
Q3 2015-0.9%
Q2 2015+1.0%
Q1 2015-1.1%
Q4 2014-3.8%
Q3 2014-3.9%
Q2 2014+0.1%
Q1 2014-2.8%
Q4 2013+3.9%
Q3 2013-3.0%
Q2 2013-2.9%
Q1 2013+9.4%
Q4 2012-1.1%
Q3 2012+1.4%
Q2 2012-1.1%
Q1 2012-4.9%
Q4 2011+0.3%
Q3 2011+0.8%
Q2 2011-0.2%
Q1 2011+2.9%
Q4 2010+2.4%
Q3 2010-0.4%
Q2 2010+3.3%
Q1 2009+1.1%
Q1 2010+0.3%
Q4 2009-0.1%
Q3 2009+0.1%
Q3 2008+0.1%
Q2 2008+4.6%
Q4 2008+4.6%
Q2 2009+4.6%
Q4 2007+4.6%

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