DaVita HealthCare Partners' stock soared 22.55% during Wednesday's trading session, driven by the company's robust first-quarter financial results and upward revision of its annual profit forecast.
The kidney dialysis service provider reported adjusted earnings per share of $2.87 for the quarter, significantly surpassing the analyst consensus estimate of $2.32. Quarterly revenue reached $3.42 billion, also exceeding market expectations of $3.36 billion. Furthermore, DaVita raised its full-year 2026 adjusted EPS guidance to a range of $14.10 to $15.20, up from its previous outlook of $13.60 to $15.00.
The strong performance and improved outlook, attributed to steady demand for its services and operational execution, prompted positive analyst reactions, including an upgrade to Buy from Hold by Deutsche Bank and a target price increase to $220 from $126.
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