Just over a week after releasing its preliminary Q2 earnings, DaVita put out its official report.
DaVita Inc. completed its sale of subsidiary DaVita Medical Group to Optum Inc., according to its latest earnings report released Thursday afternoon.
The long-awaited deal was completed for $4.34 billion, with DaVita recording a pre-tax loss of $23 million associated to the transaction.
On July 22, the Denver-based dialysis company released its preliminary Q2 financials as it commences with a 'Dutch Auction' of up to $1.2 billion worth of common stock that will run through mid-August.
Thursday's results were within the company's earlier estimates, as DaVita recorded an operating income of $462 million and an operating cash flow of $610 million.
Overall, DaVita generated nearly $2.9 billion in consolidated revenues, supported by growth in not only its dialysis business but also ancillary services and strategic initiatives.
DaVita benefited from an increase in volume during Q2, with more than 7.5 million dialysis treatments in the U.S., a 2.6% increase year-over-year.
Looking ahead, DaVita is raising its year-end guidance for operating income to a range between $1.64 billion to $1.70 billion.
However, the company is also lowering its guidance on operating cash flows from continuing operations to $1.45 billion and capital expenditures from continuing operations to $800 million.
DaVita also repurchased just over 2 million shares for around $112 million during Q2, as the company approved a new $2 billion stock repurchase authorization.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.
Photo credit: Photo credit: St. Joseph, Missouri / United States of America - March 26 2019: Davita Kidney Care in downtown St. Joseph. - Image / Editorial credit: APN Photography / Shutterstock.com