WASHINGTON (dpa-AFX) - Kidney dialysis centers operator DaVita, Inc. (DVA) reported Tuesday a profit for the first quarter that plunged from last year, hurt primarily by hefty loss contingency reserve and lower margins. However, both earnings per shared from continuing operations and quarterly revenues topped analysts' expectations. The company also raised its operating income guidance for the full-year 2013.
The Denver, Colorado-based company reported net income attributable to DaVita of $30.16 million or $0.28 per share for the first quarter, sharply lower than $140.12 million or $1.46 per share in the prior-year quarter.
Income from continuing operations attributable to DaVita for the quarter plunged to $16.92 million or $0.16 per share from $140.22 million or $1.46 per share in the year-ago quarter.
Results for the latest quarter includes $1.68 per share of loss contingency reserve. Excluding items, adjusted earnings from continuing operations was $1.84 per share, compared to $1.50 per share last year.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $1.79 per share for the quarter. Analysts' estimates typically exclude special items.
Net operating revenues for the quarter grew to $2.83 billion from $1.85 billion in the same quarter last year, and topped twelve Wall Street analysts' consensus estimate of $2.78 billion.
Operating margin for the quarter contracted 11.4 percentage points to 5.9 percent, and adjusted operating margin declined only 1.2 percentage points to 16.5 percent from last year.
Operating expenses and charges for the quarter increased to $2.66 billion from $1.53 billion in the year-ago quarter.
Total U.S. treatments for the quarter were 5.63 million or 73,579 treatments per day, representing a per day increase of 8.0 percent over last year.
During the first quarter, the company acquired eight dialysis centers and opened a total of 27 dialysis centers located in the U.S. as well as opened one center and provided management and administrative services to four additional centers outside of the U.S.
DaVita operated or provided administrative services at 2,032 outpatient dialysis, with 41 of them located in nine countries outside of the U.S. at the end of the first quarter, serving about 158,600 patients.
Looking ahead to fiscal 2013, the company raised its consolidated operating income guidance to a range of $1.80 billion to $1.90 billion from the prior forecast between $1.75 billion and $1.90 billion. The company also still expects operating cash flows for the year in a range of $1.35 billion to $1.50 billion.
DVA closed Tuesday's regular trading session at $117.56, down $0.72 or 0.61% on a volume of 1.68 million shares. However, the stock gained $4.07 or 3.46% in after-hours trading.
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