(Reuters) – DaVita forecast 2024 profit above Wall Street estimates on Tuesday on anticipated strong demand for its kidney dialysis services, sending its shares up 4.8% after the bell.
The Colorado-based company now sees 2024 adjusted per-share profit between $8.70 and $9.80, beating average analysts’ estimate of $8.68, as per LSEG data.
DaVita offers kidney care services to patients suffering from chronic kidney failure in the United States through a network of outpatient clinics and at-home dialysis services.
The healthcare company, which also provides related lab services in outpatient dialysis centers, posted fourth-quarter revenue of $3.15 billion, ahead of analysts’ estimates of $3.01 billion.
It posted a 3.2% rise in quarterly per-patient revenue, primarily helped by the seasonal impact of increased hospital inpatient dialysis volumes.
The firm continues to navigate a tight labor market, which was partially relieved by a slight ease in the wage environment last quarter.
Dialysis services provider’s quarterly per-patient care costs, which had seen a decline in previous quarter, rose 5%, hurt by higher operating expenses at its dialysis centers along with health benefit expenses.
On an adjusted basis, it reported a profit of $1.87 per share for the quarter ended Dec. 31, above analysts’ estimate of $1.59 per share.
(Reporting by Unnamalai L and Pratik Jain in Bengaluru; Editing by Tasim Zahid)
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