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DaVita stock falls as higher wages and missed treatments push profits below Street’s expectations

DaVita Inc. shares fell in Thursday’s extended session after the dialysis provider’s earnings fell short of Wall Street estimates, as the company said COVID-19 factors and higher wages hurt its bottom line.

DaVita DVA,
-3.48%
Shares were down more than 6% after the close after falling 3.5% in the regular session to close at $106.94.

The company reported net income of $162.1 million, or $1.61 per share, for the first quarter, compared to $237.4 million, or $2.09 per share, in the same period last year.

“Diluted earnings per share for the first quarter of 2022 were impacted by continued volume pressure from COVID-19, including excessive patient mortality and a higher number of missed treatments as a result of the Omicron variant,” DaVita said in a statement. “Additionally, first-quarter diluted earnings per share were impacted by above-average pay increases.”

Revenue was relatively flat or about $2.5 million lower than the $2.82 billion reported in the year-ago quarter.

Analysts polled by FactSet had forecast $1.87 per share on sales of $2.89 billion.

“It is an interesting time right now as our country and the world is faced with a unique portfolio of one-off events, all happening simultaneously,” said Javier Rodriguez, DaVita chief executive, in a statement. “As our organization addresses these challenges, I think it’s important to remember why DaVita exists—we are a patient-centric organization providing life-sustaining care to over 240,000 people in 12 countries.”

https://www.marketwatch.com/story/davita-stock-falls-as-higher-wages-missed-treatments-push-earnings-below-street-expectations-11651789118?rss=1&siteid=rss DaVita stock falls as higher wages and missed treatments push profits below Street’s expectations

Brian Lowry

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