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Sep 30, 2022

DaVita Q3 2022 Earnings Report

DaVita's financial performance was impacted by negative volume trends due to COVID and continued labor pressure.

Key Takeaways

DaVita Inc. reported consolidated revenues of $2.949 billion, operating income of $312 million, and diluted earnings per share of $1.13 for the quarter ended September 30, 2022. The company repurchased 2.1 million shares of its common stock at an average cost of $87.10 per share. The third quarter was challenging due to COVID and labor pressures.

Consolidated revenues were $2.949 billion.

Operating income was $312 million and adjusted operating income was $351 million.

Diluted earnings per share was $1.13 and adjusted diluted earnings per share was $1.45.

Operating cash flow and free cash flow were $711 million and $500 million, respectively.

Total Revenue
$2.95B
Previous year: $2.94B
+0.4%
EPS
$1.45
Previous year: $2.36
-38.6%
US Dialysis Treatments
7.34M
Previous year: 7.47M
-1.7%
US Avg Treatments per day
92.86K
Previous year: 94.51K
-1.7%
US Revenue per Treatment
$368
Previous year: $361
+2.0%
Gross Profit
$863M
Previous year: $930M
-7.2%
Cash and Equivalents
$368M
Previous year: $1.05B
-64.9%
Free Cash Flow
$500M
Previous year: $358M
+39.7%
Total Assets
$17B
Previous year: $17.6B
-3.8%

DaVita

DaVita

DaVita Revenue by Segment

DaVita Revenue by Geographic Location

Forward Guidance

DaVita provided adjusted operating income, adjusted diluted net income per share attributable to DaVita Inc., and free cash flow guidance for 2022.

Positive Outlook

  • Absence of ballot initiative expenses: $60 million
  • Integrated Kidney Care: -$25 to $0 million
  • Treatment volume growth: -$200 to $0 million
  • Revenue per treatment growth: $200 to $250 million
  • Cost savings initiatives: $125 to $175 million

Challenges Ahead

  • Labor pressure and inflation: -$300 to -$250 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income