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DaVita (NYSE:DVA) stock on Tuesday rose as much as 6.1% to $85 in extended trading, after the dialysis services provider delivered a quarterly top and bottom line beat despite seeing a fall in hospital inpatient revenues.
Denver, Colo.-based DVA is one of the leading players in the U.S. dialysis market, which according to Global Market Insights was valued at more than $42B in 2022 and is projected to swell at a nearly 4% compound annual growth rate from 2023 to 2032.
DaVita (DVA) reported Q3 adjusted earnings per share of $2.85, which beat estimates by a solid 81 cents. Revenue rose nearly 6% Y/Y to $3.12B, also beating expectations by $100M.
Moreover, DVA raised its full year guidance for adjusted operating income, adjusted earnings per share and free cash flow. The company now sees adjusted EPS of $7.80 to $8.30, compared to a prior range of $7.00 to $7.80. The consensus estimate is $7.52.
DaVita’s (DVA) results come amid investor concerns over the impact of Novo Nordisk’s (NVO) semaglutide on dialysis companies, nearly a month after the Danish drugmaker stopped a trial of the drug earlier than expected in kidney failure due to the interim data showing efficacy.
Dialysis services providers, including DVA, had seen a bout of heavy selling after NVO’s announcement. DVA chief medical officer Jeff Giullian had addressed Novo’s (NVO) news, saying that there “may be limited application” of the study’s findings to the overall chronic kidney disease patient population.
DaVita’s (DVA) Q3 report showed revenue from dialysis patient services rose 3.5% Y/Y to $2.95B. Meanwhile, total U.S. dialysis treatments in Q3 were about 7.31M, or an average of ~92.5K treatments per day, representing a per day decrease of 0.2% compared to Q2 2023. Revenue per treatment rose $3.60 from Q2 to $380.33.
“Our U.S. dialysis average patient service revenue per treatment was negatively impacted by a decrease in hospital inpatient revenues,” DaVita (DVA) said in a statement.
DVA in Q3 opened a total of five new dialysis centers and closed 15 dialysis centers in the U.S. As of September 30, the company provided dialysis services to a total of around 249.1K patients at more than 3K outpatient centers.