Read Larry Connors' blog – Short Term Trading Strategies
The El Segundo, California-based company reported net income attributable to the company for the third quarter of $110.9 million or $1.06 per share, compared with $93.9 million or $0.89 per share in the year-ago quarter.
On average, thirteen analysts polled by Thomson Reuters expected the company to earn $0.99 per share for the quarter. Analysts estimates typically exclude special items.
Operating income for the three months ended September 30, 2009 was $245 million, up from $222 million for the same period of 2008.
Net operating revenues for the quarter increased to $1.57 billion from $1.45 billion in the prior-year quarter. Ten analysts had a revenue consensus of $1.53 billion for the third quarter.
In the immediately preceding quarter, DaVita reported an 11% increase in its second-quarter profit to $105.8 million, or $1.02 per share, as treatment volume increased. Net operating revenue for the second quarter rose 8% to $1.52 billion.
Among DaVita's rivals, Fresenius Medical Care AG & Co. KGaA (FMS | Quote | Chart | News | PowerRating) posted an increase in its profit for the third quarter to $225.3 million, or $0.76 per share. Total net revenue for the quarter was $2.9 billion, up 6.5% from $2.7 billion in the comparable quarter last year. Looking ahead, FMC AG raised its fiscal 2009 revenue guidance, while tightening full year earnings outlook.
Segment wise, revenues from DaVita's Dialysis and related lab services segment for the third quarter increased to $1.49 billion from $1.38 billion in the prior-year quarter. Other - Ancillary services and strategic initiatives generated revenues of $83 million, compared to $69 million in the same quarter last year.
Total treatments for the third quarter were about 4.34 million, or about 55 thousand treatments per day, representing a per day increase of 6.1% over the third quarter of 2008. Non-acquired treatment growth in the quarter was 5.2% over the prior year's third quarter.
The company's effective tax rate was 37.0% for the third quarter of 2009, which was impacted by the amount of third party owners' income attributable to non-tax paying entities. The effective tax rate attributable to DaVita Inc. was 40.0% for the three and nine months ended September 30, 2009 which was in the range of the company's guidance.
During the third quarter of 2009, The company acquired four centers, opened 21 new centers, merged five centers, closed one center and provided administrative and management services to one additional third-party owned center.
As of September 30, DaVita operated or provided administrative services at 1,513 outpatient dialysis centers serving about 117,000 patients, of which 1,481 centers are consolidated in its financial statements.
For the nine-month period, the company's net income rose to $313.0 million or $3.00 per share from $275.8 million or $2.59 per share in the same period last year. The company's year-to-date net operating revenues improved to $4.54 billion from $4.20 billion a year ago.
Looking ahead, the company the company raised its fiscal 2009 operating income guidance range to $930 million - $950 million from its previous range of $900 million -$ 930 million.
Further, the company currently expects its operating income for 2010 in the range of $950 million to $1.02 billion.
In addition, the company projected its effective tax rate for 2009 to be in the range of 36.5% to 37.5% and its 2009 effective tax rate attributable to DaVita is still projected to be in a range of 39.5% to 40.5%.
DVA closed Tuesday's regular trading at $54.40, up $0.64 or 1.19 on a volume of $0.81 million shares. Further, the stock gained $1.10 or 1.02%, and traded at $55.50 in the after hours. For the past 52 weeks, the stock has traded in the broad range of $40.96 - $57.34, with a three month average volume of 0.80 million shares.
For comments and feedback: contact editorial@rttnews.com Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
