DaVita HealthCare Partners Inc (NYSE:DVA)’s shares rose Tuesday after the company reported better-than-expected fourth-quarter results.
The kidney dialysis provider has also issued a rosier outlook for 2014.
DaVita reports improved profit
The Denver, Colorado-based company reported Tuesday improved profit for the fourth quarter and the year ended December 31, 2013.
Income for the quarter ended December 31, 2013 and adjusted income for the year ended December 31, 2013 from continuing operations attributable to DaVita HealthCare Partners Inc (NYSE:DVA) was $212.3 million and $817.6 million, or $0.99 per share and $3.81 per share respectively.
The company’s adjusted income from continuing operations attributable to DaVita HealthCare Partners Inc (NYSE:DVA) for the quarter and year ended December 31, 2012 was $173.8 million and $612.6 million, or $0.84 per share and $3.13 per share, respectively, excluding transaction expenses associated with the acquisition of HCP, debt refinancing charges and a legal settlement and related expenses.
Following improved results, DaVita HealthCare Partners Inc (NYSE:DVA)’s shares rose on Tuesday. Shares of kidney dialysis providers such as DaVita were battered a bit last year after Medicare proposed pruning provider payments in 2014 more than expected. However, lobbyists fought back and Medicare backed off, which sent shares higher.
Results beat analysts’ estimates
DaVita HealthCare Partners Inc (NYSE:DVA)’s recent results beat analysts’ estimates. On average, 16 analysts polled by Thomson Reuters anticipated the company to report earnings of $0.98 per share for the quarter. Analysts’ estimates typically exclude special payments. The kidney dialysis provider’s total net revenues for the quarter grew to $3.06 billion from $2.48 billion in the same quarter last year, and topped twelve Wall Street analysts’ consensus estimate of $3.02 billion.
In December, in its regulatory filing it was revealed Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) boosted its stake in DaVita by grabbing an additional 1,314,170 shares through Weschler. Currently, Berkshire Hathaway Inc owns a 17.14% stake in the kidney dialysis service provider for patients with chronic kidney failure or end stage renal disease.
Paints rosy outlook for 2014
DaVita HealthCare Partners Inc (NYSE:DVA) announced that its consolidated operating income guidance for 2014 to be in the range of $1.725 billion to $1.860 billion, as against its earlier guidance of $1.675 billion to $1.850 billion. The company also anticipates its consolidated operating cash flow for 2014 to be in the range of $1.450 billion to $1.550 billion.