DaVita Raises 2024 Profit Forecast Amid Strong Dialysis Demand
Healthcare company DaVita has raised its 2024 profit forecast on the back of strong demand for its kidney dialysis services. This announcement sent shares of the company up by 3% in aftermarket trading.
Shares of DaVita had experienced a significant drop in October last year, but have gradually recovered through 2024. The recovery comes after DaVita downplayed concerns that new GLP-1 weight-loss drugs would negatively impact the demand for dialysis services.
DaVita, headquartered in Colorado, now projects its 2024 adjusted per-share profit to be between $9.25 and $10.05, an increase from its previous forecast of $9.00 to $9.80. Analysts had an average estimate of $9.32 per share according to LSEG data.
The company provides care services across the United States to patients suffering from chronic kidney failure. These services are offered through a network of outpatient clinics as well as at-home dialysis services.
DaVita mentioned it faced delays in claims processing in the first half of 2024 due to an outage at Change Healthcare. To manage this, DaVita received interest-free funding from UnitedHealth.
In its latest quarterly report, DaVita posted a revenue of $3.19 billion, which surpassed the analysts' estimate of $3.15 billion. On an adjusted basis, the company reported a profit of $2.59 per share, exceeding analysts' expectations of $2.54 per share.
