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DaVita Inc. 4th Quarter 2024 Results: Financial Performance and Future Outlook

On February 13, 2025, DaVita Inc. (NYSE: DVA) announced its financial and operating results for the quarter ending December 31, 2024. Despite facing numerous challenges throughout the year, the company reported a solid conclusion to 2024, achieving impressive numbers in various financial metrics. CEO Javier Rodriquez emphasized that the results fell within the higher range of their guidance, boosting confidence as the company celebrates its 25th anniversary in 2025.

Financial Highlights

In the fourth quarter of 2024, DaVita generated consolidated revenues of $3.295 billion, bringing the annual total to $12.816 billion. Operating income reached $565 million, with adjusted operating income recorded at $491 million for the quarter. The diluted earnings per share (EPS) stood at $3.09, while the adjusted diluted EPS was $2.24.

For the full year, DaVita documented an operating income of $2.090 billion, coupled with adjusted operating income of $1.981 billion. The total diluted EPS for the year was $10.73, with an adjusted diluted EPS of $9.68. This performance indicates a strong financial position heading into 2025, with operational cash flow totaling $2.022 billion and free cash flow at $1.162 billion for the year.

Share Repurchase and Growth Strategy

During the fourth quarter, DaVita repurchased 2.3 million shares of its common stock, spending around $367 million at an average price of $156.46 per share. Over the entire year, 9.8 million shares were repurchased at an average price of $140.06. This strategic buyback underscores the company’s commitment to enhancing shareholder value.

As of the end of 2024, DaVita provided dialysis services to approximately 281,100 patients across 3,166 outpatient centers, with 2,657 of these located within the United States. These figures reflect DaVita's expansive reach and positive impact in the healthcare sector.

Dialysis Service Performance

The fourth quarter saw a slight decline in total U.S. dialysis treatments, with 7,278,605 treatments performed, averaging 91,786 treatments per day. This indicates a 1.4% decrease from the previous quarter. The company also noted a 0.3% drop in normalized non-acquired treatment growth compared to the same period in 2023.

Strategic Investments for Future Success

As DaVita moves into 2025, the company aims to further enhance clinical outcomes and improve the quality of life for its patients and staff. The strategic focus will be on integrated kidney care (IKC) initiatives, which aim to optimize care pathways and reduce total medical spending while promoting better health outcomes for patients in risk-based arrangements.

With a significant investment in research, technology, and maintaining high service standards, DaVita is positioning itself as a leader in the healthcare space. As the company honors its 25-year legacy, it is dedicated to making profound changes in the dialysis segment and the broader healthcare landscape.

Conclusion

DaVita Inc. has demonstrated resilience and adaptability in the face of various challenges in 2024. The financial results reveal a strong operational foundation from which to grow and innovate in the coming year. Stakeholders will undoubtedly be watching how DaVita navigates its 25th anniversary and the subsequent strategic initiatives that will unfold.

For more details, please watch the conference call recording available at the DaVita Investor Relations website.