Davita Inc (NYSE:DVA) stock fell 2.96% (As on May 13, 11:20:48 AM UTC-4, Source: Google Finance) after the company reported first quarter 2025 financial results that modestly exceeded analyst expectations, with earnings and revenue coming in slightly above consensus estimates. The company reported operating income of $439 million for the quarter, representing an operating margin of 13.6%. Total U.S. dialysis treatments increased 0.01% compared to the previous quarter, averaging 91,793 treatments per day. As of March 31, 2025, we provided dialysis services to a total of approximately 282,000 patients at 3,173 outpatient dialysis centers, of which 2,661 centers were located in the United States and 512 centers were located in 13 countries outside of the United States. During the first quarter of 2025, the company acquired one, opened six and closed four dialysis centers in the United States, and acquired one and closed two dialysis centers outside of the United States. As of March 31, 2025, the company had approximately 62,100 patients in risk-based integrated care arrangements representing approximately $5.2 billion in annualized medical spend. We also had an additional 9,300 patients in other integrated care arrangements; the company do not include the medical spend for these patients in this annualized medical spend estimate.

DVA in the first quarter of FY25 has reported the adjusted earnings per share of $2, beating the analysts’ estimates for the adjusted earnings per share of $1.96. The company had reported the adjusted revenue growth of 5.1 percent to $3.22 billion in the first quarter of FY25, beating the analysts’ estimates for revenue of $3.20 billion. The quarter change was primarily due to the incorporation of phosphate binders, a drug class taken orally by many patients with end stage kidney disease to reduce absorption of dietary phosphate, into the ESRD Prospective Payment System (ESRD PPS) bundle effective January 1, 2025, Medicare base rate and other annual rate increases, favorable changes in mix, including seasonal increases in hospital inpatient dialysis treatments, partially offset by a seasonal decline from co-insurance and deductibles and other normal fluctuations.

Additionally, DaVita repurchased 3.7 million shares of its common stock during the quarter at an average price of $148.94 per share, totaling $550 million. The company continued share repurchases after the quarter end, buying back an additional 1.7 million shares for $259 million through May 12.

For the full year 2025, DaVita expects adjusted operating income between $2.01 billion and $2.16 billion and adjusted diluted earnings per share of $10.20 to $11.30.