DaVita (DVA) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenues were $3.19 billion, with adjusted operating income of $506 million, adjusted EPS of $2.59, and free cash flow of $654 million, exceeding expectations due to lower patient care costs and strong revenue per treatment.

• Net income attributable to DaVita Inc. was $223 million for Q2 2024, up from $179 million in Q2 2023, with diluted EPS of $2.50.

• Volume growth lagged expectations due to elevated missed treatments from severe weather and higher mortality rates.

• Investments in technology and process improvements enhanced revenue operations and supported sustainable RPT growth.

• The company is addressing the nursing shortage through partnerships, internships, and residency programs.

Financial highlights

• U.S. dialysis revenues were $2.84 billion for Q2 2024, with international revenues growing 24.9% year-over-year for the first half.

• Adjusted operating income was $506 million for Q2 2024, up 12.7% sequentially and 29.1% year-over-year for the six-month period.

• Adjusted EPS was $2.59 for Q2 2024; free cash flow was $654 million for the quarter.

• Revenue per treatment was $390.22, up approximately $6 sequentially; full-year RPT growth now expected at 3.5%-4%.

• Patient care costs per treatment were $255.25 and flat quarter-over-quarter.

Outlook and guidance

• 2024 adjusted operating income guidance is $1.91–$2.01 billion, a $35 million increase at midpoint.

• 2024 adjusted EPS guidance is $9.25–$10.05.

• Free cash flow guidance for 2024 is $950–$1,200 million.

• Full-year treatment volume growth expected between 0.5% and 1%; RPT growth guided to 3.5%-4%.

• Center closure costs now included in adjusted OI guidance, totaling ~$60 million for 2024.