The trader works on the floor of the New York Stock Exchange on February 13, 2025.
NYSE
Stocks fell on Friday after Davita, a company that provides dialysis services, issued a weak outlook amid rising costs of care, and large investor Berkshire Hathaway has announced some shares on a contract in advance. It’s offloaded.
Healthcare stocks fell more than 12% on Friday. According to LSEG, the Colorado-based company said it expects earnings per share to be between $10.20 and $11.30 compared to analysts’ forecasts of an average share of $11.24.
The unfortunate guidance highlights the increased costs of care for patients due to centre closure costs and health benefits costs. In the fourth quarter, the company owed a fee for US dialysis center closures totaling $24.2 million.
Still, Davita’s fourth quarter revenues were $2.13 per share per LSEG, adjusted based analyst estimates.
Separately, Davita’s biggest institutional investor Berkshire Hathaway sold 203,091 shares on Tuesday, cutting it to 45%, worth nearly $6.4 billion.
The sale was part of a share repurchase agreement reached by the two parties in April. Davita agreed to buy back the shares to reduce Berkshire’s ownership to 45% quarterly.
Warren Buffett’s conglomerate first invested in Davita in 2011. At the end of September, Davita was Berkshire’s 10th largest shareholding.
