Research Desk Line-up: Providence Service Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 16, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on DaVita Inc. (NYSE: DVA), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=DVA, following the Company's disclosure of its second quarter fiscal 2017 on August 01, 2017. The Company's revenue increased 4.3% on a y-o-y basis and exceeded market estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
http://protraderdaily.com/register/
Get more of our free earnings reports coverage from other constituents of the Specialized Health Services industry. Pro-TD has currently selected The Providence Service Corporation (NASDAQ: PRSC) for due-diligence and potential coverage as the Company reported on August 08, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Providence Service when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on DVA; also brushing on PRSC. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/?symbol=DVA
http://protraderdaily.com/optin/?symbol=PRSC
Earnings Reviewed
For three months ended June 30, 2017, DaVita's revenue increased 4.3% to $3.88 billion on a y-o-y basis from $3.72 billion in Q2 FY16. The revenue surpassed analysts' expectations of $3.84 billion.
For the reported quarter, DaVita's G&A expenses decreased 50 basis points to 9.9% of revenue from 10.4% of revenue in Q2 FY16. During Q2 FY17, the Company's EBITDA was $578.35 million and adjusted EBITDA was $635.87 million.
For the reported quarter, DaVita's EBIT margin increased 90 basis points to 9.7% of revenue from 8.8% of revenue in Q2 FY16. During Q2 FY17, the Company's adjusted EBIT margin decreased 160 basis points to 11.2% of revenue from 12.8% of revenue in Q2 FY16. During Q2 FY17, DaVita's effective tax rate was 41.4% compared to 58.8% in Q2 FY16.
During Q2 FY17, DaVita's net income increased 137.9% to $127 million on a y-o-y basis from $53.38 million in Q2 FY16. For the reported quarter, the Company's adjusted net income decreased 14.9% to $178.68 million on a y-o-y basis from $210.01 million in Q2 FY16. During Q2 FY17, DaVita's diluted EPS increased 150% to $0.65 on a y-o-y basis from $0.26 in Q2 FY16. For the reported quarter, the Company's adjusted diluted EPS decreased 8.9% to $0.92 on a y-o-y basis from $1.01 in Q2 FY16. The adjusted diluted EPS surpassed analysts' expectations of $0.90.
DaVita's Segment Details
Kidney Care - During Q2 FY17, the Kidney Care segment's operating revenue increased 3.1% to $2.33 billion from $2.26 billion in Q2 FY16. For the reported quarter, the segment's patient care cost per treatment decreased 6.9% to $211.82 from $227.47 in Q1 FY17. The decrease was due to better performance in center operating expenses and some seasonal factors. During Q2 FY17, the segment's G&A expenses decreased 10 basis points to 8.1% of revenue from 8.2% of revenue in Q2 FY16. For the reported quarter, the segment's EBIT and adjusted EBIT increased 22 basis points to $450 million from $449 million in Q2 FY16.
Davita Medical Group (DMG) - During Q2 FY17, the DMG segment's operating revenue increased 13.2% to $1.20 billion from $1.06 billion in Q2 FY16. For the reported quarter, the segment's EBIT was negative $13 million compared to negative $102 million Q2 FY16. During Q2 FY17, the segment's adjusted EBIT decreased 22.7% to $34 million from $44 million in Q2 FY16.
Volume
The Company's total US dialysis treatments for Q2 2017 were 7,035,894, or 90,204 treatments per day, representing a per day increase of 4.3% on a y-o-y basis. The number of member months for which DMG provided care during the reported quarter was approximately 2.2 million, of which approximately 0.9 million, 1.0 million, and 0.3 million related to senior, commercial, and Medicaid members, respectively.
Balance Sheet
As on June 30, 2017, DaVita's cash and cash equivalents decreased 22% to $712.00 million from $913.19 million in Q4 FY16. For the reported quarter, the Company's inventories increased 20.9% to $199.30 million from $164.86 million in Q4 FY16.
During Q2 FY17, DaVita's long-term debt decreased 44 basis points to $8.91 billion from $8.95 billion in Q4 FY16. In H1 FY17, DaVita's cash provided by operating activities increased 6.8% to $1.01 billion from $945.64 million in H1 FY16. During Q2 FY17, the Company repurchased 3.6 million shares of its common stock for $232 million.
Outlook
For fiscal 2017, DaVita expects adjusted EBIT to be in the range of $1.68 billion-1.78 billion, including adjusted EBIT estimate of $1.57 billion-$1.63 billion for its Kidney Care segment and adjusted EBIT of $110 million-$150 million for its DMG segment. The Company expects operating cash flow to be in the range of $1.75 billion-1.95 billion for fiscal 2017.
Stock Performance
At the close of trading session on Tuesday, August 15, 2017, DaVita's stock price slightly rose 0.11% to end the day at $56.98. A total volume of 1.24 million shares were exchanged during the session. The Company's shares are trading at a PE ratio of 8.75. At Tuesday's closing price, the stock's net capitalization stands at $10.89 billion.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: [email protected]
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily