DaVita is taking off a strong earnings report.
On Monday evening, the kidney dialysis provider shared its second-quarter results, and the numbers were strong.
DaVita generated earnings of $2.30 per share, beating analysts' $2.09 EPS target.
However, revenues of $2.927 billion narrowly missed the Street's $2.93 revenue view.
DaVita expects full-year earnings between $7.50 and $8.50 for the year, which fell in line with analysts' estimates.
DVA is one of the top S&P 500 stocks with a 5.7% gain in today's premarket.
Our Take: DaVita looks like a good value with a 10.1 P/E, and its business model is as recession-resistant as they come. Shares have been up-trending since mid-June, and today's breakout could put it over the hump.
Uber Technologies [UBER] - Last Close: $24.60
Uber Technologies is rallying after an early-morning earnings release.
The ride-share giant released its Q1 results this morning, and the report is getting a warm reception in the premarket.
Uber swung to a Q2 operating loss of $1.33 per share after earning net income of $0.58 per share a year earlier. Analysts expected a much smaller loss of $0.27 per share.
However, revenues surged to $8.07 billion in the second quarter from $3.93 billion a year earlier, as higher gas prices and inflation drove many cost-conscious riders back to the platform.
Analysts only expected $7.37 billion in revenues.
Despite its Q2 operating loss, Uber returned to positive free cash flow of $382 million, reversing the negative cash flow it reported in the year-earlier quarter.
UBER is trading actively with a 13.1% gain on the news.
Our Take:Uber just CANNOT turn a profit. It seems the more money this company makes, the more it loses. Its negative EPS was nearly 5X higher than analysts expected despite a sizeable revenue beat.
The recessionary environment is sapping demand for high-growth, no-profit tech companies like Uber, and I am not confident in this company's ability to consistently generate profits. I don't think UBER has seen its bottom yet.
