Why DaVita shares are down today

DaVita Inc. DVA shares are trading lower today in sympathy with Fresenius Medical Care AG & Co FMS, which provided a bearish outlook for 2022 and withdrew its 2025 targets .

What happened?

In a press release yesterday, Fresenius Medical Care said it now expects 2022 revenue to grow in the low-single digit range to previously guided average. The company now expects its net profit to decline by a large percentage.

"Unprecedented challenges in the U.S. labor market escalated significantly in the second quarter. For Fresenius Medical Care, this translated into significantly higher-than-expected wage inflation, surcharges, retention payments and additional costs for contract labor to contain growing staff shortages,” the company said.

Why it matters

DaVita shares are trading lower on fears that other companies in the sector may experience similar headwinds.

DaVita is the largest provider of dialysis services in the United States, with a market share that exceeds 35% when measured by both patients and clinics.

Price Action: DaVita shares are down 3.75% at $83.66.

Photo: Courtesy of Online Marketing at Unsplash

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.