DaVita HealthCare Partners Inc. on Tuesday reported gains in its third-quarter income and revenue, surpassing Wall Street expectations, and also raised its financial guidance for the year.
The Denver-based health care company said it made $215.9 million, or $1 per diluted share, on revenue of $3.5 billion for the period that ended Sept. 30. A year ago, DaVita posted a net income of $184.1 million, or 85 cents per diluted share, on revenue of $3.3 billion.
Analysts expected earnings per share of 96 cents and revenue of $3.46 billion.
DaVita’s full-year operating income should now land in the range of $1.87 billion to nearly $1.92 billion, the company said.
In a call with analysts and investors, DaVita CEO Ken Thiry said it was a “solid operating quarter” and highlighted the potential from the , a physicians group with 20 clinics in the Seattle area.
DaVita kept busy during the quarter, announcing a and plans to open a
Thiry told analysts that DaVita plans to make significant investments in the areas of information technology, compliance and physician recruiting. The company also recently announced that it would .
However, DaVita’s earnings do face a couple of headwinds, Thiry said. DaVita’s future earnings likely will be negatively affected by cuts in Medicare Advantage reimbursements and other Medicaid-related cuts in California. Additionally, a “potential” headwind could be a non-renewal of a payor contract that could cause “significant patient and employer disruption.”
Alicia Wallace: 303-954-1939, awallace@denverpost.com or @aliciawallace
