DaVita (NYSE:DVA) is enjoying a solid start to the week as the business increasing its outlook for fiscal 2019.
The dialysis business based out of Denver sees its adjusted operating earnings for the year to be in the range of $1.64 billion to $1.70 billion. The company previously guided the forecast to be in the range of $1.54 billion to $1.64 billion–the second-quarter financial results are projected to be unveiled on Aug. 1.
DaVita boosted the 2019 guidance as it has temporarily reduced the costs of calcimimetics, drugs geared to reduce parathyroid hormones, located in neck glands that regulate calcium levels in blood, per the business. Bloomberg senior analyst Jason McGorman interprets this movement as a “tailwind that may not be sustainable.”
The company focuses on dialysis services for kidney issues–DVA stock suffered over the last 15 days or so as Trump lifted the veil on a change in how the country approaches kidney disease treatment. The goal would be to lower costs by bringing forth in-home dialysis and organ donation, as in-center dialysis may be more physical and mentally harmful than the alternative, per Alex M. Azar II, the health and human services secretary.
On the DaVita front, the business also updated its information for investors surrounding its stock buyback program, which will now operate using a Dutch auction. This form of auction begins with a high price that is continually lowered until someone agrees to purchase the asset.
The share price will be between $53.50 and $61.50 per share.
DVA stock is up 5.2% on Monday.