Why DaVita Stock Withered on Wednesday
Dialysis specialist DaVita (NYSE: DVA) had quite the Wednesday to forget, as investors sold out of its stock following the company's latest-earnings release. On the back of news that profitability was notably lower than expected, those folks left DaVita shares with a more-than 10% decline in value on the day. This was significantly worse than the 0.3% dip of the S&P 500 index that trading session.
For its third quarter, DaVita earned total revenue of $3.26 billion, which was an improvement over the $3.12 billion of the same period in 2023. On the other hand, the specialty healthcare company's non-GAAP (adjusted) net income slipped over that stretch of time, declining to $222 million ($2.59 per share) from the year-ago profit of $268 million.
While DaVita's top line exceeded (if barely) the average-analyst estimate of $3.25 billion, its adjusted profitability was well below the consensus of $2.72.
Source Fool.com
