Down 26%, Is This Buffett Stock a Buy?
Warren Buffett loves "toll bridge" businesses -- those that offer an essential product or service. DaVita (NYSE: DVA), which provides life-sustaining renal dialysis, is one such company. That's why Mr. Buffett's company, Berkshire Hathaway, first bought shares back in 2011. Berkshire now owns over 36 million shares representing 38% of the entire company.
DaVita recently reported its second-quarter results, which were mainly in line with expectations. Revenue of $2.93 billion matched Wall Street forecasts, and earnings per share (EPS) of $2.30, as measured under generally accepted accounting principles (GAAP), beat estimates by $0.22. The company's full-year adjusted EPS guidance was in a range of $7.50 to $8.50; the consensus estimate was $7.84.
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Source Fool.com
