DaVita reports strong Q4 sales but stock declines after earnings release

DaVita Inc. reported Q4 sales of $3.29 billion, a 4.7% increase from last year, surpassing Wall Street expectations. The company's non-GAAP profit was $2.24 per share, exceeding analyst estimates by 4.3%. Despite the positive sales figures, DaVita's stock declined following the earnings report. CEO Javier Rodriquez noted the company finished strong in 2024, achieving adjusted operating income and earnings per share within the top half of their guidance. DaVita provides dialysis services for chronic kidney failure and end-stage renal disease. The company faces challenges such as reliance on government reimbursements and competition from integrated healthcare systems, but the outpatient care sector is expected to grow.