The aftermarket share price for healthcare provider DaVita increased 3% on Tuesday after the firm boosted its profit prediction for 2024. The business is expecting high demand for its kidney dialysis services.
Like its competitors, DaVita saw a precipitous drop in October of last year, but the stock has since recovered somewhat in 2024 as the business has played down concerns that new GLP-1 weight-loss medications may reduce demand for dialysis.
The Colorado-based company’s revised adjusted per-share profit target for 2024 is $9.25 to $10.05, up from $9.00 to $9.80.
According to LSEG statistics, analysts have estimated an annual per-share profit of $9.32.
In the US, the business serves people with chronic renal failure by way of a system of outpatient clinics and home dialysis.
After applying for and receiving interest-free finance from UnitedHealth, DaVita reported that the Change Healthcare outage continued to cause claims processing delays well into 2024.
The business beat analysts’ expectations for the quarter, reporting $3.19 billion in revenue.
Analysts had predicted $2.54 per share in earnings for the quarter, but the company recorded $2.59 per share after adjustments.
