DaVita stock falls as higher wages, missed treatments push earnings below Street expectations

Shares of DaVita Inc. fell in the extended session on Thursday after dialysis service provider’s earnings failed to meet Wall Street estimates, as the company said COVID-19 factors and higher wages affected its results.

DaVita DVA,
shares fell more than 6% after hours, after a 3.5% drop in the regular session to close at $ 106.94.

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

“Diluted earnings per share in the first quarter of 2022 were affected by continued volume pressures from COVID-19, including excess patient mortality and higher lost treatments as a result of the omicron variant,” he said. said DaVita in a statement. “In addition, diluted earnings per share in the first quarter were affected by higher-than-normal wage increases.”

Revenue was relatively stable, at about $ 2.5 million lower than the $ 2.82 billion reported last quarter.

Analysts polled by FactSet had forecast $ 1.87 billion in revenue of $ 2.89 billion.

“Right now is an interesting time, as our country and the world are facing a unique portfolio of one-off events happening at the same time,” Javier Rodriguez, CEO of DaVita, said in a statement. “As our organization works on these challenges, I think it’s important to consider why DaVita exists: We are a patient-centered organization that provides vital care to more than 240,000 people in 12 countries.”

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