DaVita Inc (NYSE:DVA), a leading provider of dialysis services, experienced a significant 6.2% pre-market plunge in its stock price on October 30, 2024, following the release of its third-quarter 2024 earnings report. The company faced several challenges during the quarter that impacted its financial performance and raised concerns among investors.
One of the key factors contributing to the stock price decline was DaVita's failure to meet earnings expectations. While the company's revenue of $3.26 billion exceeded analyst estimates of $3.25 billion, the adjusted earnings per share (EPS) of $2.59 missed the consensus estimate of $2.73. This earnings miss was partly due to higher patient care costs driven by labor cost pressures and increased medical benefits expenses.
Additionally, DaVita reported that elevated patient mortality rates continued to pressure treatment volumes, which declined by 0.1% year-over-year. This ongoing challenge has been a concern for the company, as it directly impacts its revenue and profitability.
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