Shares of DaVita surged more than +5% in premarket trading Monday, following news of the company’s second-quarter operating income guidance exceeding analysts’ expectations.
The healthcare company reported its projection for second-quarter operating income between $460 million and $465 million - a range that is substantially higher than the FactSet consensus of $398 million.
For the full-year, the company increased its adjusted operating income guidance to between $1.64 billion and $1.70 billion, from its prior forecast of a range of $1.54 billion to $1.64 billion.
The news comes ahead of DaVita’s modified Dutch auction tender offer on up to $1.2 billion of its common stock. The auction, priced between $53.50 and $61.50 per share, will start on Monday and continue until August 16 midnight.