DaVita reported Q3 2024 financial results: - Revenue of $3.26 billion beat analyst estimates of $3.25 billion - However, adjusted EPS of $2.59 missed analyst estimates of $2.73 - The revenue increase was driven by higher average reimbursement rates - But earnings were impacted by higher patient care costs and expenses
DaVita reaffirmed its 2024 guidance for adjusted operating income between $1.91-$2.01 billion and adjusted EPS of $9.25-$10.05. The guidance accounts for an estimated $10-$20 million impact in Q4 from supply chain disruptions caused by recent hurricanes.
Key points on the quarter: - Elevated patient mortality continued to pressure treatment volumes, which declined 0.1% year-over-year - Operating income was $535 million with a 16.4% operating margin - Free cash flow was strong at $555 million - Share repurchases continued with 2.7 million shares bought back
While DaVita faced some headwinds on costs and treatment volumes, its revenue grew and it maintained its full-year outlook while generating robust cash flows in the quarter.
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