Monday, DaVita Inc. (DVA) reported a decline in second-quarter net income despite a rise in revenues, with the lower profits reflecting an increase in operating expenses. Nevertheless, the results were ahead of the consensus estimates. The company also narrowed its operating income guidance for fiscal year 2008 and issued operating income guidance for fiscal 2009.
The dialysis service provider's second-quarter net income decreased to $94.95 million, or $0.90 per share from $125.02 million, or $1.17 per share a year ago.
The year-ago results included some one-item gains, excluding which the net income of the period was $88.7 million or $0.83 per share.
Analysts polled by First Call/Thomson Financial expected the company to earn $0.83 per share for the quarter.
Net operating revenues for the quarter rose to $1.41 billion from $1.31 billion in the prior-year period, beating the consensus estimate of $1.37 billion.
For the six-month period, net operating revenues was $2.75 billion compared with $2.59 billion last year. Net income dropped to $181.89 million, or $1.70 per share from $201.61 million, or $1.89 per share, for the comparable period last year.
For fiscal 2009, the company sees operating income in the range of $820 million to $880 million.
The stock ended Monday's regular trading down 0.45% at $55.89 on the New York Stock Exchange.
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