The Denver–based dialysis provider saw its quarterly net income more than double year-over-year.
DaVita Inc. experienced growth in most financial categories as its consolidated revenues eclipsed $2.9 billion, according to the company's latest earnings report released Tuesday afternoon.
The The Denver–based dialysis provider saw its quarterly net income more than double year-over-year, totaling $150 million. Additionally, the company's adjusted net income per share rose from $0.56 in Q3 2018 to $1.53 in Q3 2019, while the company's net income rose $280 million year-over-year.
Both DaVita's operating income and adjusted operating income also experienced significant increases. The company's stock jumped more than 5% in after-hours trading following the release of the earnings report.
The most significant development for DaVita during Q3 was its 'Dutch auction,' which ran for three weeks during the summer.
In its earnings report, the company stated that the Dutch auction resulted in the repurchase of more than 21.8 million shares at an average amount of $56.60 per share.
A day before releasing its Q3 financials, DaVita announced that John Winstel, a former executive at Proctor & Gamble, was joining the company as Chief Accounting Officer.
In the middle of October, DaVita responded to California Governor Gavin Newsom's decision to sign a piece of legislation into law that aims to restrict excessive profits for dialysis companies.
DaVita Kidney Care, a subsidiary of the larger organization, stated it was "extremely disappointed" in AB 290 and predicted that thousands of dialysis patients would face financial harm, according to a statement sent to HealthLeaders.
DaVita projects its year-end adjusted operating income in a range between $1.74 billion to $1.77 billion. The company's guidance for capital expenditures from continuing operations is expected to remain flat in a range between $700 million to $750 million.
ADDITIONAL DAVITA Q3 EARNINGS REPORT HIGHLIGHTS:
- DaVita posted an operating cash flow of $641 million, an increase of nearly $200 million year-over-year.
- DaVita benefited from an increase in volume during Q3, with more than 7.6 million dialysis treatments in the U.S., a 2.7% increase compared to Q3 2018.
For complete financial information, review DaVita's filing with the Securities and Exchange Commission.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.
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