Shares of dialysis center operator DaVita Inc. rose modestly Wednesday after reporting fourth quarter earnings that beat Wall Street expectations and raised its 2007 guidance.
DaVita said net income for the quarter rose more than 15 percent to $74.1 million (70 cents per share), compared to $64.1 million (61 cents per share) for the same period a year ago. That beat by 2 cents a share the consensus of analysts surveyed by Thomson Financial. Net operating revenues rose more than 12 percent to $1.27 billion.
The El Segundo-based company said it now expects its operating income this fiscal year to be in the range of $700 million and $760 million, compared o previous estimates of $680 million to $750 million. In 2006, the company's operating income was $701 million, excluding a $38 million gain on a product supply agreement.
The company said its ability to hit the higher numbers depends in part on whether it can complete and integrate new acquisitions, such as Gambro Healthcare,which was acquired in 2005.
DaVita shares closed up 89 cents to $57.45 Wednesday on the New York Stock Exchange.
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