DaVita 2025 Q1 Earnings Net Income Declines 24.1%
Daily EarningsTuesday, May 13, 2025 8:52 am ET

DaVita (DVA) reported its fiscal 2025 Q1 earnings on May 12th, 2025. surpassed revenue expectations with a total of $3.22 billion. The company maintained its 2025 guidance, indicating confidence in achieving its financial targets despite challenges. The guidance remained in line, with no adjustments made.
Revenue
DaVita's total revenue for the first quarter of 2025 rose by 5.5% to $3.22 billion compared to the same period last year. The U.S. dialysis segment generated $2.82 billion, while U.S. dialysis patient service revenues also contributed $2.82 billion. Revenue from external sources amounted to $2.81 billion. Intersegment revenues totaled $11.73 million, with eliminations accounting for -$14.46 million. Ancillary services added $414.82 million, and dialysis patient service revenues amounted to $297.57 million. Other external sources and intersegment revenues contributed $114.53 million and $2.73 million, respectively, resulting in consolidated revenues of $3.22 billion.
Earnings/Net Income
DaVita's earnings per share dropped 24.9% to $2.05 in Q1 2025 from $2.73 in Q1 2024. The net income decreased to $232.22 million, representing a 24.1% decline from $305.98 million in the previous year. The decline in EPS reflects challenging market conditions impacting profitability.
Price Action
The stock price of DaVita edged down 1.41% during the latest trading day, rose 2.02% over the most recent full trading week, and has dropped 5.51% month-to-date.
Post-Earnings Price Action Review
The post-earnings strategy of purchasing DaVita stock after a revenue miss and holding it for 30 days resulted in a return of 57.88%, notably underperforming the benchmark's 95.08% return. This strategy exhibited substantial risk and volatility, as evidenced by a Sharpe ratio of 0.28 and a maximum drawdown of -53.83%. The findings underscore the necessity of risk management when employing such a volatile investment approach. Investors should consider the inherent risks and potential for significant losses when navigating this strategy.
CEO Commentary
Javier Rodriguez, CEO, emphasized DaVita's resilience amidst challenges like a cybersecurity incident. He stressed the company's commitment to uninterrupted patient care, highlighting the Community Kidney Health Program with the YMCA as a key initiative. Rodriguez noted adjusted operating income exceeded expectations due to favorable patient-care costs and expressed optimism about maintaining financial guidance.
Guidance
DaVita is maintaining its 2025 guidance range for adjusted operating income and earnings per share, expressing confidence in meeting financial targets. The company anticipates a 50 basis point decline in treatment volumes due to external challenges like a high flu season and a cyber incident. However, the strength of first-quarter performance and improved profitability from phosphate binders are expected to offset these headwinds, supporting the overall financial outlook.
Additional News
In the past three weeks, DaVita announced a substantial share repurchase initiative, acquiring 3.7 million shares of its common stock at an average price of $148.94 per share. This buyback reflects the company's confidence in its financial stability and commitment to returning value to shareholders. Additionally, DaVita's Integrated Kidney Care (IKC) program continues to expand, now serving approximately 62,100 patients under risk-based arrangements, representing $5.2 billion in annualized medical spend. These developments underline DaVita's strategic focus on enhancing shareholder value and expanding its comprehensive kidney care services.
Revenue
DaVita's total revenue for the first quarter of 2025 rose by 5.5% to $3.22 billion compared to the same period last year. The U.S. dialysis segment generated $2.82 billion, while U.S. dialysis patient service revenues also contributed $2.82 billion. Revenue from external sources amounted to $2.81 billion. Intersegment revenues totaled $11.73 million, with eliminations accounting for -$14.46 million. Ancillary services added $414.82 million, and dialysis patient service revenues amounted to $297.57 million. Other external sources and intersegment revenues contributed $114.53 million and $2.73 million, respectively, resulting in consolidated revenues of $3.22 billion.
Earnings/Net Income
DaVita's earnings per share dropped 24.9% to $2.05 in Q1 2025 from $2.73 in Q1 2024. The net income decreased to $232.22 million, representing a 24.1% decline from $305.98 million in the previous year. The decline in EPS reflects challenging market conditions impacting profitability.
Price Action
The stock price of DaVita edged down 1.41% during the latest trading day, rose 2.02% over the most recent full trading week, and has dropped 5.51% month-to-date.
Post-Earnings Price Action Review
The post-earnings strategy of purchasing DaVita stock after a revenue miss and holding it for 30 days resulted in a return of 57.88%, notably underperforming the benchmark's 95.08% return. This strategy exhibited substantial risk and volatility, as evidenced by a Sharpe ratio of 0.28 and a maximum drawdown of -53.83%. The findings underscore the necessity of risk management when employing such a volatile investment approach. Investors should consider the inherent risks and potential for significant losses when navigating this strategy.
CEO Commentary
Javier Rodriguez, CEO, emphasized DaVita's resilience amidst challenges like a cybersecurity incident. He stressed the company's commitment to uninterrupted patient care, highlighting the Community Kidney Health Program with the YMCA as a key initiative. Rodriguez noted adjusted operating income exceeded expectations due to favorable patient-care costs and expressed optimism about maintaining financial guidance.
Guidance
DaVita is maintaining its 2025 guidance range for adjusted operating income and earnings per share, expressing confidence in meeting financial targets. The company anticipates a 50 basis point decline in treatment volumes due to external challenges like a high flu season and a cyber incident. However, the strength of first-quarter performance and improved profitability from phosphate binders are expected to offset these headwinds, supporting the overall financial outlook.
Additional News
In the past three weeks, DaVita announced a substantial share repurchase initiative, acquiring 3.7 million shares of its common stock at an average price of $148.94 per share. This buyback reflects the company's confidence in its financial stability and commitment to returning value to shareholders. Additionally, DaVita's Integrated Kidney Care (IKC) program continues to expand, now serving approximately 62,100 patients under risk-based arrangements, representing $5.2 billion in annualized medical spend. These developments underline DaVita's strategic focus on enhancing shareholder value and expanding its comprehensive kidney care services.

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