DaVita Second Quarter Results Top Estimates, Boosts 2014 Outlook

(RTTNews) - Kidney dialysis centers operator DaVita HealthCare Partners, Inc. (DVA) reported Thursday a profit for the second quarter that decline from last year, despite improved operating margins and revenue growth, reflecting higher expenses and charges.

However, both adjusted earnings per shared and quarterly revenues topped analysts' expectations. The company also raised its operating income guidance for the full-year 2014.

The Denver, Colorado-based company reported net income of $147.68 million or $0.68 per share for the second quarter, lower than $254.38 million or $1.18 per share in the prior-year quarter.

Excluding items, adjusted earnings from continuing operations for the latest quarter was $205.7 million or $0.95 per share. On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.89 per share for the quarter. Analysts' estimates typically exclude special items.

Total net revenues for the quarter grew to $3.17 billion from $2.87 billion in the same quarter last year, and topped fifteen Wall Street analysts' consensus estimate of $3.10 billion.

Net patient service revenues grew to $2.19 million from $2.05 million from last year.

Operating margin for the quarter improved 80 basis points to 15.3 percent from last year's 14.5 percent. Total operating expenses and charges for the quarter increased to $2.69 billion from $2.35 billion in the year-ago quarter.

Total U.S. dialysis treatments for the quarter were 6.20 million or 76,441 treatments per day, representing a per day increase of 5.6 percent over last year. Non-acquired treatment growth in the quarter was 5.0 percent.

During the second quarter, the company acquired three dialysis centers and opened a total of 22 new dialysis centers in the U.S. as well as opened six new dialysis centers outside of the U.S.

Looking ahead to fiscal 2014, the company raised its consolidated operating income guidance to a range of $1.755 billion to $1.840 billion from the prior forecast between $1.725 billion and $1.840 billion.

DVA closed Thursday's regular trading session at $70.44, down $0.88 or 1.23% on a volume of 1.99 million shares. However, the stock gained $2.17 or 3.08% in after-hours trading.