TD Cowen's analyst, Gary Taylor, has adjusted the target price for DaVita (DVA, Financial), decreasing it from $165 to $157 while maintaining a Hold rating on the stock. This revision follows DaVita's first-quarter results, which fell short of the adjusted EBIT forecasts. The underperformance was largely attributed to increased costs associated with flu cases and adverse weather conditions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for DaVita Inc (DVA, Financial) is $166.64 with a high estimate of $186.00 and a low estimate of $145.00. The average target implies an upside of 14.60% from the current price of $145.41. More detailed estimate data can be found on the DaVita Inc (DVA) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, DaVita Inc's (DVA, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for DaVita Inc (DVA, Financial) in one year is $140.44, suggesting a downside of 3.42% from the current price of $145.41. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the DaVita Inc (DVA) Summary page.
DVA Key Business Developments
Release Date: May 12, 2025
- Adjusted Operating Income: $439 million for Q1 2025.
- Adjusted Earnings Per Share (EPS): $2 for Q1 2025.
- Free Cash Flow: Negative $45 million for Q1 2025.
- US Treatments Per Day: Declined 40 basis points versus Q1 2024.
- Revenue Per Treatment: Increased by $4 in Q1 2025.
- Patient Care Cost Per Treatment: Increased by $7 sequentially in Q1 2025.
- G&A Costs: Declined by $33 million sequentially in Q1 2025.
- Adjusted International Operating Income: Increased by $29 million versus Q4 2024.
- Integrated Kidney Care Operating Losses: $29 million in Q1 2025.
- Share Repurchases: 3.7 million shares repurchased in Q1 2025, with an additional 1.7 million shares repurchased since the end of the quarter.
- Debt Expense: $135 million in Q1 2025, expected to increase to $145 million per quarter starting Q2 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- DaVita Inc (DVA, Financial) reported adjusted operating income and adjusted earnings per share slightly ahead of expectations, driven by strong expense management and profitability from phosphate binders.
- The partnership with the YMCA for chronic kidney disease education and prevention has shown promising early results, with 30% of participants found to have previously undiagnosed CKD.
- Despite a cybersecurity incident, DaVita Inc (DVA) maintained uninterrupted dialysis care for patients, demonstrating strong operational resilience.
- The company repurchased approximately $680 million of stock, indicating a commitment to returning capital to shareholders.
- International operations showed strong performance, contributing positively to the overall financial results.
Negative Points
- A cybersecurity incident disrupted operations, requiring remediation efforts and resulting in some regulatory and legal follow-ups.
- Treatment volume underperformed expectations, partly due to an abnormally high flu season and storms, leading to a 50-basis-point decline in treatments for the year.
- The company experienced a negative free cash flow of $45 million in the first quarter.
- The cyber incident and flu season are expected to have lingering impacts on treatment volumes and admissions.
- Integrated Kidney Care (IKC) reported operating losses of $29 million, with some volatility expected in this segment.
