DaVita's EPS Projections Drop Ahead of Q1 2025 Earnings

DaVita Inc. is set to release its Q1 2025 earnings soon. Analysts forecast a drop in adjusted earnings per share, contrasting with optimistic fiscal forecasts for 2025 and 2026. Investors remain cautious due to the company's outlook.

Date: 21-04-2025

AI Rating: 5

Current Earnings and Forecast Insights
DaVita Inc. is preparing for its Q1 2025 earnings release, with analysts expecting adjusted EPS to be $1.75, reflecting a significant year-over-year decline of 26.5%. Despite this dip, the company is projected to show robust growth in fiscal 2025, with an adjusted EPS increase of 11.2% to $10.76 and an even more optimistic forecast of $12.17 per share in fiscal 2026, indicating an 18.1% rise.

Revenue Growth Evaluation
In the previous quarter (Q4 2024), DaVita reported a revenue of $3.3 billion, representing a 4.7% year-over-year increase. This growth can be attributed to seasonal factors and routine fluctuations. Despite a strong earnings report surpassing Wall Street expectations in Q4, investor sentiment has been negatively impacted by a cautious outlook for fiscal 2025.

Market Sentiment and Analyst Recommendations
The overall consensus rating for DaVita remains cautious with a "Hold" recommendation from eight analysts. This reflects uncertainty among investors about DaVita's future performance. The mean price target set at $169.14 suggests a potential upside of 20.8% from current levels, which indicates that while there is optimism, it is tempered by existing concerns about the company's ability to execute at the expected level.

Stock Performance Context
DaVita's stock has shown resilience, with shares rising 9.7% over the past 52 weeks, outperforming major indices. However, the recent 11.1% drop following the Q4 2024 results highlights the sensitivity of the stock to guidance projections. Stakeholders should closely monitor earnings and management's responses regarding operational performance for further insights into stock potential.

Stocks: DVA SPX XLV