Traders worked on the floor of the New York Stock Exchange on February 13, 2025.
New York Stock Exchange
Davitaa company that provides dialysis services, stocks tumbled on Friday after offering weak prospects amid rising medical expenses, while large investors Berkshire Hathaway Some shares were offloaded in the pre-planned agreement.
Healthcare stocks fell 8% on Friday. The Colorado-based company said it expects its adjusted profit per share in 2025 to be between $10.20 and $11.30 compared to analysts’ average expectations of $11.24 per share.
Disappointing guidance highlights the increase in patient care costs due to the cost of center closure and health benefits. In the fourth quarter, the company’s totaled $24.2 million in the closure of its U.S. dialysis center.
Still, Davita’s fourth-quarter revenue was $2.24 per share on an adjusted basis, higher than analysts’ estimates of $2.13 per share.
Another regulatory filing shows Berkshire Hathaway, the largest institutional investor in Delavita, sold 203,091 shares on Tuesday to reduce its stake to 45%, worth nearly $6.4 billion.
The deal is part of a stock buyback agreement, which the parties reached in April. Davita agreed to buy back shares to reduce Berkshire’s ownership stake to 45% of the quarter.
Warren Buffett’s conglomerate first invested in Davita in 2011. As of the end of September, Davita was the 10th largest stake in Berkshire.
