NYSE$DVA

DaVita HealthCare Partners Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Announced results for the fourth quarter and year ended December 31, 2019.

DaVita Inc. reported consolidated revenues of $2.899 billion, operating income of $463 million, and diluted earnings per share from continuing operations of $1.86 for the fourth quarter of 2019. The company repurchased 8,368,506 shares of its common stock at an average cost of $64.80 per share.

  • Consolidated revenues reached $2.899 billion.
  • Operating income was $463 million, representing a 16.0% operating margin.
  • Diluted earnings per share from continuing operations amounted to $1.86.
  • Operating cash flow from continuing operations was $678 million, with free cash flow from continuing operations at $415 million.

Headline financials

Total Revenue

$2.9B

Previous: $2.82B+2.8%
EPS (adj)

$1.86

Previous: $0.90+106.7%
U.S. Dialysis Treatments

7.7M

No prior period
U.S. Dialysis Treatment Days

79.4

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

96.7K

Previous: 96.4K+0.4%
U.S. Dialysis Avg Revenue per Treatment

$348.31

Previous: $349.02-0.2%
Capital Expenditures

$219M

Previous: $281M-22.1%
Free Cash Flow

$415M

Previous: $108M+284.6%
Net Income

$303M

Previous: -$150M+302.3%
Operating Income

$463M

Previous: $388M+19.3%
Gross Profit

$898M

Previous: $794M+13.1%
Cash & Equivalents

$1.1B

Previous: $323M+241.3%
Total Assets

$17.3B

Previous: $19.1B-9.4%
Stock-Based Comp

$20M

Previous: $13.5M+48.9%

Revenue & EPS history

DaVita · Revenue · Quarterly

$2.9B

Q4 2019+2.8%vs Q4 2018
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

DaVita · $2.94B total across 2 segments · Q4 2019

  • U.S. Dialysis Patient Services
    $2.69B
  • International Dialysis Patient Service
    $255M

Forward guidance

DaVita provided its 2020 financial outlook, but did not provide guidance for diluted net income from continuing operations per share attributable to DaVita Inc., effective tax rate on income from continuing operations or free cash flow from continuing operations. The guidance excludes certain items, including foreign currency fluctuations.

Tailwinds

  • Revenue between $11.5 billion and $11.7 billion.
  • Operating income margin between 13.0% and 14.0%.
  • 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 $5.75 and $6.25.
  • Capital expenditures from continuing operations between $700 million and $750 million.

Headwinds

  • Significant risks and uncertainties could cause actual results to vary significantly.
  • Guidance excludes certain items, including foreign currency fluctuations.
  • Inability to predict certain items contained in the GAAP measures without unreasonable efforts.
  • Guidance for effective income tax rate excludes third party owners' income and related taxes attributable to non-tax paying entities.
  • The forward-looking measures and the underlying assumptions involve significant risks and uncertainties.

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 Q4 2019

Historical avgQ4 2019

+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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