DaVita reports ransomware attack, operations affected

Published 14/04/2025, 11:58
DaVita reports ransomware attack, operations affected

DENVER, CO - DaVita Inc ., a leading provider of kidney care services with a market capitalization of $12.4 billion and annual revenue of $12.8 billion, disclosed on Monday that it had been the target of a ransomware attack on April 12, 2025, which resulted in the encryption of certain company network elements. The healthcare company, which is listed on the New York Stock Exchange under the symbol (NYSE:DVA) and maintains a GREAT financial health score according to InvestingPro, immediately activated its response protocols and isolated the affected systems to contain the incident.

According to the company’s statement, third-party cybersecurity experts have been engaged to assist with assessing and remediating the situation. DaVita has also informed law enforcement of the cybersecurity breach. While the company has activated contingency plans to continue providing patient care, it acknowledged that some operational aspects have been disrupted. The extent and duration of the disruption are currently unclear as the company continues to work towards restoring affected functions. Despite these challenges, DaVita maintains strong fundamentals with a P/E ratio of 14.5 and robust free cash flow yield, as reported by InvestingPro, which offers comprehensive analysis through its Pro Research Report.

The news comes from a recent filing with the U.S. Securities and Exchange Commission and highlights the ongoing challenges faced by healthcare providers in safeguarding sensitive data against cyber threats. DaVita has not yet ascertained the full scope or nature of the incident, nor the potential long-term impact on its operations.

Investors are cautioned that forward-looking statements regarding the impact of the incident and the timeline for recovery are based on the information available at the time of the report and are subject to change. DaVita has committed to not updating these statements unless required by law, and actual outcomes may differ materially from those currently anticipated due to various known and unknown risks. InvestingPro analysis reveals that management has been actively buying back shares, and the company has demonstrated strong returns over the past five years, with 8 additional exclusive ProTips available to subscribers.

The company’s latest annual report and other filings with the SEC provide additional details on potential risk factors that could influence the company’s future performance and should be reviewed by stakeholders for a comprehensive understanding of the situation.

This report is based on a press release statement and provides an overview of the facts surrounding DaVita Inc.’s recent cybersecurity incident.

In other recent news, DaVita Inc. reported fourth-quarter earnings for 2024, with an adjusted earnings per share (EPS) of $2.24, exceeding the forecast of $2.13. The company’s revenue also surpassed expectations, reaching $3.3 billion, slightly above the anticipated $3.26 billion. Despite these positive results, DaVita’s stock experienced a decline in after-hours trading. Bernstein SocGen Group maintained a Market Perform rating for DaVita, with a price target of $184, noting the company’s effective revenue cycle management but expressing concerns over weak treatment volume growth. TD Cowen revised its price target for DaVita to $165, up from $150, following a review of the company’s fourth-quarter results, although it retained a Hold rating on the stock. DaVita’s management projects flat treatment volume for 2025, with a slight revenue growth per treatment, and anticipates closing approximately 20 centers in the year. The company’s guidance for 2025 includes an adjusted operating income range of $2.01 to $2.16 billion and an EPS range of $10.20 to $11.30. These developments reflect DaVita’s ongoing efforts to manage costs and optimize operations amidst challenges in treatment volume growth.

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