DaVita profit rises after dialysis acquisition
Dialysis center operator DaVita reported a higher profit for the third quarter as the company gained new revenue from its acquisition of rival DSI Renal Inc.
For the period ended Sept. 30, the company earned $135.3 million, or $1.42, up from $119.4 million, or $1.15, in the same period last year. The company's revenue increased 9.5 percent to $1.8 billion for the period.
Analysts polled by FactSet expected earnings of $1.43 per share on revenue of $1.78 billion.
At the close of the quarter, the company had 1,777 outpatient dialysis centers serving roughly 138,000 patients. The company acquired 113 new centers with its purchase of DSI Renal and divested 28 centers to complete the acquisition.
The company reiterated its 2011 income guidance of between $1.1 billion and $1.2 billion.
Last week DaVita said it expects to receive a subpoena from federal investigators looking into payments made to the company for dialysis services in New York. The probe involves payment for infusion drugs covered by the New York Medicaid system for dialysis. Medicaid provides health care coverage for the poor and disabled.
In recent years DaVita has received subpoenas from U.S. Justice Department officials in Missouri and Colorado as well as Health and Human Services officials in Texas.
Shares of DaVita Inc. rose $3.38, or 4.8 percent, to $73.52.