Feb 13 (Reuters) - Dialysis firm DaVita DVA.N projected annual profit below estimates on Thursday due to rising patient care costs, sending its shares down 11% in after-hours trading.
The company is grappling with increasing patient care costs due to higher compensation, health benefits and other direct operating expenses associated with the closure of its dialysis centers.
The Colorado-based firm expects its 2025 adjusted profit per share to be between $10.20 and $11.30, the midpoint of which is lower than analysts' average expectation of $11.24 per share, according to data compiled by LSEG.
DaVita provides services for patients with chronic kidney failure through a network of outpatient clinics and at-home dialysis services across the United States.
Last quarter, the company said it expected minimal impact from disruptions caused by recent hurricanes, including a shortage of intravenous fluids and dialysis products. The disruptions occurred after a power outage at a Baxter International BAX.N facility due to Hurricane Helene.
The company has said it expects supply dynamics to normalize in the first quarter.
During the three months ended December 31, the company incurred charges for closures of its U.S. dialysis centers amounting to about $24.2 million, compared to $18.3 million in the previous quarter.
These closures impacted patient care costs in the fourth quarter by $17.6 million, up from an impact of $3.5 million in the third quarter ended September 30, 2024.
On an adjusted basis, it reported a fourth-quarter profit of $2.24 per share, above analysts' estimates of $2.13 per share.
(Reporting by Christy Santhosh in Bengaluru; Editing by Mohammed Safi Shamsi)
((Christy.Santhosh@thomsonreuters.com;))
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