Warren Buffett's Berkshire Hathaway sells some DaVita; Shares fall on disappointing guidance

Core Viewpoint - DaVita's shares declined significantly following a weak profit outlook for 2025, attributed to rising patient care costs and center closure expenses, while Berkshire Hathaway reduced its stake in the company [1][2]. Group 1: Financial Performance - DaVita's adjusted profit per share for 2025 is projected to be between $10.20 and$11.30, falling short of analysts' average expectation of $11.24 per share [2]. - The company's fourth quarter earnings were reported at$2.24 per share on an adjusted basis, exceeding analysts' estimates of $2.13 per share [3]. Group 2: Cost Factors - The disappointing guidance is linked to increasing patient care costs, which include expenses related to the closure of dialysis centers and health benefits [2]. - In the fourth quarter, DaVita incurred charges totaling$24.2 million due to the closure of its dialysis centers in the U.S. [2].