DaVita HealthCare Partners Inc.NYSE
DaVita: Sometimes The Money Is Lying On The Street
Early Retiree • 24 Comments
Early Retiree • 24 Comments
Mon, Nov. 21, 1:35 PM
- Thinly traded American Renal Associates (ARA -8.6%) slumps on slightly higher volume pressured by Goldman Sachs' downgrade to Sell from Neutral. Analyst Matthew Borsch cites the company's decision to temporarily suspend certain assistance for charitable premium support as a "key risk" to its pricing and earnings growth. Despite the cloudy outlook, he raised the price target to $22 (0%) upside from $20.
- Competitor DaVita (DVA +2%) suspended its premium support activities several weeks ago.
Wed, Nov. 2, 4:31 PM
- DaVita (NYSE:DVA) Q3 results ($M): Total Revenues: 3,730.6 (+5.8%); Net Patient Service Revenues: 2,514.1 (+9.1%).
- Net Income: 571.3 (+164.6%); Non-GAAP Net Income: 197 (-6.2%); EPS: 2.76 (+176.0%); Non-GAAP EPS: 0.95 (-5.9%); CF Ops (9 mo.): 1,481.3 (+32.3%).
- Consensus view was non-GAAP EPS of $0.93 on revenues of $3.7B.
- 2016 Guidance: Non-GAAP Operating Income: $1.810B - 1.870B from $1.785B - 1.875B; Kidney Care Non-GAAP Operating Income: $1.695B - 1.725B from $1.675B - 1.725B; DMG Non-GAAP Operating Income: $115M - 145M from $110M - 150M; Cash Flow Ops: $1.750B - 1.8750B from $1.600B - 1.750B.
- Shares are up 3% after hours on increased volume.
Wed, Nov. 2, 4:07 PM
Tue, Nov. 1, 5:35 PM
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Tue, Nov. 1, 11:30 AM
- DaVita (DVA -1%) unit DaVita Kidney Care suspends its support for applications to the American Kidney Fund (AKF), a charity that provides premium assistance for Medicaid patients who seek additional coverage through a 2017 Affordable Care Act (ACA) Plan.
- The company's action stems from an apparent inconsistent position by the Centers for Medicare & Medicaid Services (CMS) that it is unlawful for a Medicaid beneficiary to enroll in an ACA Plan despite stating that they are eligible to do so, just not eligible for federal premium tax credits or federal subsidies.
- DaVita says the situation will affect ~2K of its dialysis patients who are covered under Medicaid and have obtained extra coverage through an ADA Plan. It adds that these patients will most likely revert back to Medicaid-only coverage if they cannot get financial assistance with the ADA premiums.
- The company services ~3,000 additional patients who are enrolled in an ADA Plan and not Medicaid with about 50% receiving charitable assistance in addition to or instead of premium tax credits. It says many of these individuals are at risk of being uninsured if the financial support is not available.
- If CMS stipulates that Medicaid patients cannot obtain addition coverage in ADA Plans, DaVita states it will reduce annualized operating income by ~$140M before any offsets. If CMS were to forbid charitable assistance for all ESRD patients on ACA Plans, the impact on yearly operating income would be ~$230M.
- Management will provide additional details on the situation during tomorrow's Q3 earnings call.
Mon, Oct. 31, 11:00 AM
Thu, Oct. 20, 7:02 AM
- In a regulatory filing, DaVita (NYSE:DVA) discloses the financial details of its separation agreement with HealthCare Partners President Dennis Kogod, whose employment will be terminated on November 30.
- In exchanged for signing a release of the company and certain affiliates from claims, Mr. Kogod will receive a payment of $1.5M. In addition, the parties inked a three-year consulting agreement that will pay him $100K per month in addition to a lump sum payment of $1.8M in January 2017 and $100K at the conclusion of the agreement in 2019.
Fri, Sep. 9, 9:51 AM
- Quest Diagnostics (NYSE:DGX) initiated with Neutral rating and $86 (4% upside) price target by Citigroup.
- Seattle Genetics (NASDAQ:SGEN) initiated with Overweight rating and $60 (19% upside) price target by Morgan Stanley.
- Pacira Pharmaceuticals (NASDAQ:PCRX) initiated with Market Perform rating by Cowen & Company.
- Medpace Holdings (Pending:MEDP) initiated with Outperform rating and $35 (19% upside) price target by Credit Suisse. Initiated with Buy rating and $35 price target by UBS.
- Gemphire Therapeutics (Pending:GEMP) initiated with Buy rating and $20 (61% upside) price target by Laidlaw.
- DaVita Healthcare (NYSE:DVA) initiated with Neutral rating and $71 (11% upside) price target by Citigroup.
- AbbVie (NYSE:ABBV) initiated with Outperform rating and $82 (29% upside) price target by Raymond James.
- Spark Therapeutics (NASDAQ:ONCE) initiated with Buy rating and $73 (23% upside) price target by Stifel Nicolaus.
Fri, Aug. 19, 10:05 AM
- Dialysis services firms are mired in selling pressure in early trading in response to the news that The Centers for Medicare & Medicaid Services (CMS) has issued a public request for information regarding the alleged steering of Medicare/Medicaid beneficiaries into other plans in order to earn higher reimbursement rates. The agency has also sent letters to all Medicare-enrolled dialysis centers informing them of its announcement.
- The request for information and letters is aimed at situations where Medicare/Medicaid patients may be steered into Affordable Care Act-compliant plans which could result in the disruption of care associated with a change in network providers. CMS wants to maintain the integrity of its programs for patients while making sure they are enrolled in appropriate plans while avoiding inappropriate costs.
- In addition to its information request, CMS is mulling its regulatory and operational options to prohibit or limit premium payments and routine waiver of cost-sharing for qualified health plans by healthcare providers, revisions to Medicare and Medicaid provider enrollment rules, the imposition of civil monetary penalties for individuals who fail to provide correct information about consumers enrolled in a plan and potential changes allowing insurers to limit their payment to healthcare providers to Medicare-based amounts for certain services and items of care.
- Dialysis services-related tickers: (DVA -5.5%)(FMS -6.2%)(ARA -15.2%)
Mon, Aug. 8, 4:08 PM
Sun, Aug. 7, 5:35 PM
- AMPH, APLE, ARNA, ATSG, BKD, BLCM, BOJA, BWXT, CAI, CC, CLDX, CLNY, CLVS, CPE, CSC, CSLT, CUI, CVG, DTSI, DVA, EGN, EGY, ELNK, ENDP, ENV, FNV, HTZ, ICUI, IFF, IPHI, JPEP, KITE, LC, LXU, MAIN, MBI, MCHP, MODN, MTW, MXL, NCMI, NILE, NPTN, NUAN, NVGS, NVRO, NWSA, ONDK, OPK, OTTR, PFSW, PHH, PKY, PNM, PNNT, PRAA, PRI, RARE, RAX, RBA, RBC, REN, RMTI, ROG, RPD, RSPP, RWT, SHO, SINA, SREV, TUBE, TVIA, TWLO, VSLR, WB, WBMD, ZLTQ
Fri, Jul. 15, 10:10 AM
- Wells Fargo ticks off 20 S&P 500 stocks with the most upside potential vs. consensus, and the 20 with the most downside risk vs. consensus.
- The list is compiled by comparing the midpoint of Wells Fargo Securities valuation ranges to consensus fair value estimates, volatility adjusting the percentage difference, and ranking the resulting score.
- Upside: AEE, BEN, CCL, DVA, EIX, ES, EXC, FTR, HUM, INTC, JNJ, LNT, PEG, PNW, SCG, T, WEC, WU, XEL, XOM.
- Downside: ANTM, C, CI, COF, EQT, FOXA, FSLR, GS, KIM, LH, MON, MSI, MYL, NVDA, NWSA, SLG, TIF, TSO, UA, WLTW.
Mon, Jun. 27, 11:16 AM
- The outperformance of low-P/E stocks that marked H1 is behind us, says RBC's Jonathan Golub, and it's time for the "Stable Growers" to re-asset leadership. He cautions about putting money to work too quickly though, noting the pullback so far has been limited.
- His list of Stable Growers (page 1, page 2): CHD, CL, CVS, K, MO, PEP, PG, PM, BCR, BDX, DGX, DVA, HSIC, JNJ, LH, MDT, SYK, TMO, UNH, ZBH, AFL, AON, MMC, TMK, CTAS, DHR, HON, ITW, LMT, MMM, NLSN, RSG, RTN, UPS, VRSK, WM, XYL, CMCSA, MCD, OMC, ADP, APH, EMC, MA, T, VZ, ECL, PX
Wed, May 4, 4:56 PM
- DaVita HealthCare Partners (NYSE:DVA) Q1 results ($M): Net Revenues: 3,518.1 (+8.9%); Kidney Care: 2,592 (+9.8%); HCP: 989 (+6.6%); Operating Costs & Charges: 3,216.2 (-4.1%).
- Net Income: 97.4 (+188.1%); Non-GAAP Net Income: 190 (+1.6%); EPS: 0.47 (+188.5%); Non-GAAP EPS: 0.92 (+7.0%); CF Ops: 429.0 (+4.6%). Consensus: EPS of $0.86 on revenues of $3.51B.
- 2016 Guidance: Operating income: $1.800B - 1.950B; Kidney Care operating income: $1.625B - 1.725B; HCP operating income: $175M - 225M; CF Ops: $1.550B - 1.750B.
- Q2 Consensus: EPS of $0.98 on revenues of $3.64B.
Wed, May 4, 4:08 PM
- DaVita HealthCare Partners (NYSE:DVA): Q1 EPS of $0.92 beats by $0.06.
- Revenue of $3.58B (+8.8% Y/Y) beats by $70M.
Tue, May 3, 5:35 PM
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