Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (After Market Close)
Pre-Earnings Price$80.09Last close (Nov 7, 2023)
Post-Earnings Price$87.00Open (Nov 8, 2023)
Price Change
$6.91(+8.63%)
- New patient starts are back to expected levels, indicating recovery and expected positive volume growth in 2024 and beyond.
- Revenue per treatment increased due to improved collections and negotiated rate increases, reflecting operational efficiency and pricing power.
- DaVita plans to resume share repurchases, with increased liquidity from an upsized $1.5 billion revolving credit facility, demonstrating confidence in the business and commitment to return capital to shareholders.
- Future gains from improved collections and cost savings are limited, as the majority of benefits from these initiatives have already been realized, and no significant improvements are expected in the near future.
- General and administrative expenses are expected to increase in the fourth quarter, due to seasonality and higher costs, which may impact profitability.
- Missed treatments are slightly higher than before, which could negatively affect revenue growth as the company works to address this issue.