DaVita Unit Acquires in Germany - Analyst Blog
November 10 2011 - 11:23AM
Zacks
Yesterday, DaVita Inc. (DVA) announced the
acquisition of ExtraCorp AG by its wholly-owned subsidiary DV Care
GmbH. ExtraCorp is a German company that owns and operates two
dialysis centers in Salzgitter and Seesen and manages two other
dialysis centers in Dresden and Freital. All four centers provide a
wide variety of dialysis services, of which hemodialysis is the
most important one.
Acquisitions have been DaVita’s preferred growth strategy over
the years and the company has slowly started moving into the
international market. It already has dialysis centers in Singapore
and India and has signed an agreement to build some in
Malaysia.
Additionally, it is trying to expand its presence in Europe.
DaVita has been looking for acquisition and partnership
opportunities in all major European and Asian countries over the
past year. At the same time, the company is also looking at
domestic acquisitions. In September 2011, DaVita completed the
acquisition of its competitor DSI Renal Inc.
Earnings Review
DaVita reported third-quarter income from continuing operations
of $138.2 million, or $1.45 per share, which exceeded the Zacks
Consensus Estimate by a penny.
Further, the Zacks Consensus Estimate for DaVita’s
fourth-quarter earnings is currently at $1.48 per share, up about
31% year-over-year. Of the 13 firms covering the stock, 11 revised
their estimates upward, while 1 downward revision was witnessed in
the last 30 days.
For 2011, earnings are expected to be about $5.05 per share,
climbing about 15% year-over-year. The company competes with
Lincare Holdings Inc. (LNCR) and
HealthSouth Corporation (HLS). Currently, DaVita
caries a Zacks #2 Rank, implying a short term Buy rating.
On Wednesday, the shares of the company closed at $72.68, down
2.39%, on the New York Stock Exchange.
DAVITA INC (DVA): Free Stock Analysis Report
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LINCARE HLDGS (LNCR): Free Stock Analysis Report
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