What is the revenue and EPS growth rate for DaVita year over year?

What were the key takeaways from DaVita's earnings call?

What does DaVita do and what are its main business segments?

What factors drove the changes in DaVita's revenue and profit?

What is the market's earnings forecast for DaVita next quarter?

What is DaVita's gross profit margin?

What were the key takeaways from DaVita’s earnings call?

Did DaVita beat or miss consensus estimates last quarter?

- **Q3 Results**: $517M operating income, $2.51 EPS, in line with expectations. U.S. volume down 1.5% YoY due to one-time events.
- **2026 Outlook**: +50-75bps volume growth vs. 2025, offset by MA mix and premium tax credit risks.
- **Strategic Investments**: AI, IT upgrades to drive long-term efficiency and patient care.
- **Financial Health**: Free cash flow $604M, leverage 3.37x, 10M shares repurchased YTD.
- **Risks**: IKC timing uncertainty, $120M Mozarc charge resolution in 2026.

**【CEO Summary Section】**
- Highlighted clinical research advancements, including 500+ clinical trials and FDA approvals for ESKD drugs.
- Reported Q3 adjusted operating income of $517M and EPS of $2.51, in line with expectations.
- U.S. treatment volume declined 1.5% YoY due to flu season, hurricane, and cyber incident impacts.
- Emphasized long-term IT investments (AI, scheduling systems) despite 2025 G&A growth.
- Full year guidance reaffirmed: $2.035B-$2.135B operating income, $10.35-$11.15 EPS.
- 2026 outlook noted risks from payer mix, IKC timing, and Medicare Advantage dynamics.

**【CFO Financial Commentary】**
- Q3 free cash flow: $604M.
- Revenue per treatment (RPT) +$6 YoY, driven by rate increases and phosphate binders.
- Patient care costs per treatment +$5 sequentially, but 2025 guidance (5-6% growth) maintained.
- International adjusted OI: $27M (down $9M QoQ due to one-time benefits).
- IKC Q3 loss: $21M, but 2025 flat vs. 2024 guidance held.
- Share buybacks: 10M shares ($1.5B) YTD, including 45% ownership repurchase agreement with Berkshire.
- Leverage: 3.37x EBITDA, within 3-3.5x target.

**【Q&A Key Highlights】**
- **Volume Growth**: 2025 headwinds (75-100bps) from flu, hurricane, cyber; 2026 expected +50-75bps improvement.
- **Cyber Impact**: Q3 volume decline 100bps, with 2026 recovery offset by day mix headwinds.
- **Payer Mix**: Commercial mix more impactful than MA; 2026 MA enrollment volatility noted.
- **IKC Timing**: 2024 results delayed, 2025 OI phasing uncertain.
- **Mozarc Charge**: $120M 3-year drag eliminated in 2026 via one-time charge.
- **RPT Seasonality**: Q4 +$50M from vaccines, claims resolution, and rate increases.
- **Market Share**: No meaningful shift despite cyber incident, per USRDS data.

DaVita Inc. (DVA) Q3 2025 Earnings Call Transcript

- **Resilient Q2 Performance**: Maintained AOI guidance despite 1.1% treatment volume decline, driven by $13 million cyber costs and 75-100 bps volume drag.
- **Cost Management Excellence**: 5%+ PCC growth through labor productivity and binder cost savings offset RPT underperformance.
- **Innovation Focus**: Investing in HDF and GLP-1s to reduce mortality, with 60% adoption target by 2026.
- **Sustainable Growth Path**: 2%+ annual treatment growth achievable via disciplined execution and 3%+ AOI expansion.
- **Liquidity Strength**: $157 million Q2 free cash flow; $1.25 billion debt refinanced to reduce interest costs.

**【CEO Summary Section】**
- **Clinical Resilience Amid Challenges**: Despite a 1.1% year-over-year decline in U.S. treatment volume due to a cyber incident, the company maintained adjusted operating income (AOI) guidance of $2.01 billion to $2.16 billion. The decline was driven by a 50 basis point increase in missed treatment rates, partially offset by strong patient care cost (PCC) management.
- **Cyber Incident Impact**: The cyber attack in April resulted in $13 million in non-GAAP expenses and a 75-100 basis point drag on annual treatment volume growth. However, the company expects minimal ongoing impact beyond Q2.
- **Innovation Focus**: Emphasized investment in high-volume hemodialfiltration (HDF) and advanced dialyzers to improve middle molecule clearance, with clinical studies underway to assess efficacy.
- **Long-Term Growth Outlook**: Reaffirmed 3% to 7% AOI growth target, supported by disciplined cost management and a focus on reducing mortality rates through GLP-1 adoption and predictive analytics.

**【CFO Financial Commentary】**
- **Q2 Financial Highlights**: 
  - Adjusted AOI: $551 million (vs. $542 million in Q1)
  - Adjusted EPS: $2.95 (vs. $2.83 in Q1)
  - Free Cash Flow: $157 million
- **Key Drivers**: 
  - **Patient Care Costs**: Down $3.50 per treatment sequentially due to improved labor productivity and lower binder dispensing volumes.
  - **Revenue Per Treatment (RPT)**: Increased $4.50 sequentially but fell short of expectations due to cyber-related claim delays.
  - **Binders Bundle**: Contributed $50 million to AOI for the year, with no net impact from Q2 dispensing volume decline.
- **Capital Structure**: Maintained leverage ratio at 3.34x, with $1.25 billion in debt refinanced to reduce interest costs.

**【Q&A Highlights】**
- **Volume Growth Path**: Expect 2% annual treatment growth over time, with Q3 volume growth expected to be worse than Q2 due to seasonal trends.
- **Mortality Rate Dynamics**: Excess mortality from Q1 flu subsided, but pre-COVID levels remain elevated. Company targeting 30% GLP-1 adoption rate by 2026.
- **Cost Control Sustainability**: Labor productivity improvements and binder cost savings are structural, enabling 5%+ PCC growth while maintaining margins.
- **HDF Adoption**: No timeline for fleet-wide HDF conversion; awaiting clinical evidence and physician preference.
- **Free Cash Flow Recovery**: $1 billion+ annual target achievable in H2 through cyber-related catch-up and lower cash taxes.


DaVita Inc. (DVA) Q2 2025 Earnings Call Transcript

- **Q1 Beat**: $439M OI vs. guidance, driven by phosphate binders ($10/RPT) and intl. growth.
- **Treatment Risk**: Full-year -50bps vs. prior -30bps due to flu/maintenance/cyber.
- **Phosphate Outlook**: Full-year OI contribution now $50M (vs. $0-50M range).
- **Share Buybacks**: $680M YTD; 2025 pace front-loaded.

**【CEO Summary Section】**
- **Cybersecurity Incident Update**: Restored most systems post-April encryption, with remaining fixes ongoing. Q2 will absorb one-time costs, partially covered by insurance. No Q1 financial impact.
- **Q1 Financial Performance**: Adjusted OI of $439M (vs. guidance), driven by phosphate binders ($10/RPT), strong intl. growth, offset by 50bps treatment shortfall (flu/maintenance).
- **Phosphate Binders Transition**: 30% of pilot participants had undiagnosed CKD. Full-year OI contribution now expected at upper end of $0-$50M range due to iron-based drug mix.
- **Capital Allocation**: $680M share buybacks YTD; 2025 repurchases front-loaded. No change to innovation/inorganic growth focus.
- **Policy Developments**: Neutral on tariffs/medicaid; EPTC impact cumulative $75-120M over 3 years (trending higher due to 2025 exchange growth).

**【CFO Financial Commentary】**
- **Q1 Metrics**: 
  - Adjusted EPS: $2.00
  - Free Cash Flow: -$45M
  - Revenue per treatment: +$4 (phosphate binders offset seasonal co-pay decline)
  - Patient care cost per treatment: +$7 (phosphate binders)
- **Treatment Volume**: 40bps YoY decline, 50bps below forecast. Flu/maintenance caused 400-500 missed admissions. Full-year guidance now -50bps vs. prior -30bps.
- **Guidance**: Full-year OI/EPS unchanged. RPT growth 4.5-5.5% (half from core, half from orals).

DaVita (DVA)-12 May 25-2025 Q1 Earnings call transcript

- **2024 Strong Financials**: Adjusted OI up 21% to $1.98B, driven by revenue cycle improvements and cost savings.
- **2025 Growth Targets**: 5.2% OI growth (midpoint) and 11% EPS growth, with focus on oral drug reimbursement ($0-$50M OI contribution) and free cash flow of $1B-$1.25B.
- **Volume Headwinds**: 2025 assumes flat U.S. treatment volume due to 50bps headwinds, but long-term 2% growth expected.
- **PD Recovery**: New starts normalized post-hurricane, but 2025 volume impact from Q4 lost admits (~15-20bps).
- **Capital Return**: Share buybacks (~$1B/year) prioritize over M&A, with IKC targeting breakeven by 2026.

**【CEO Opening Remarks】**
- Celebrated 25 years of clinical innovation, emphasizing home dialysis adoption (80% of patients use connected cyclers) and expansion into value-based care (IKC) with CMS partnerships.
- 2024 full-year adjusted OI grew 21% to $1.98B, driven by revenue cycle improvements and cost efficiencies. However, U.S. dialysis volume growth of 47bps fell short of expectations due to PD supply disruptions and hurricane-related costs.
- 2025 guidance: 5.2% OI growth (midpoint) and 11% EPS growth, with a focus on returning capital to shareholders via buybacks.

**【CFO Financial Highlights】**
- Q4 2024: Adjusted OI of $491M, EPS of $2.24, free cash flow of $281M. Full-year free cash flow reached $1.16B.
- 2025 Outlook:
  - Revenue per treatment (RPT) growth: 4.5-5.5% (40% from oral drug reimbursement, 60% from rate increases).
  - Patient care costs: 6-7% growth (40% from oral drugs, 60% from inflation).
  - G&A: 4% increase, driven by team investments.
  - Free cash flow: $1B-$1.25B, with share buybacks continuing at ~$1B annual pace.

**【Q&A Key Takeaways】**
- **Volume Growth Challenges**: 2025 midpoint assumes flat U.S. treatment volume due to 50bps headwinds from leap year effects and PD supply disruptions. Management expects 2% long-term volume growth but acknowledges timing uncertainty.
- **Oral Drug Impact**: 2025 OI contribution of $0-$50M, with $10/Medicare patient in potential upside. Adherence rates and mix variability create wide range.
- **PD Recovery**: New PD starts returned to pre-hurricane levels, but 350 lost admits in Q4 will negatively impact 2025 volume by ~15-20bps.
- **Capital Allocation**: Share buybacks (~$1B/year) remain priority, with M&A activity limited to capital-efficient opportunities.
- **IKC Progress**: 2024 adjusted OI loss of $35M, targeting breakeven by 2026 through improved outcomes and cost management.


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