The shares of DaVita Inc ( DVA ).plunged 10.2% in pre-market hours trading on Friday after Berkshire Hathaway ( BRK/A ) trimmed its stake in the company. The dialysis provider also issued a weak outlook for 2025 as it announced its results after the market closed on Thursday.

What Happened: Berkshire Hathaway ( BRK/A ) , the multinational conglomerate headed by Warren Buffett, sold off its 45% stake or 203,091 shares in the company. This sale, which took place on February 11, has brought down the conglomerate’s holdings to approximately $6.4 billion, representing about 35.89 million shares.

Additionally, DaVita’s 2025 outlook missed Wall Street expectations, projecting full-year EPS between $10.20 and $11.30, lower than the analysts’ average estimate of $11.44.

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Why It Matters: Even as the company posted a weaker outlook, its fourth-quarter earnings and revenue exceeded expectations. The company reported adjusted earnings per share of $2.24 for Q4, exceeding the analyst consensus of $2.13. Revenue reached $3.3 billion, surpassing estimates of $3.26 billion.

CEO Javier Rodriguez expressed confidence: “Despite a year with unique hurdles, we finished strong in 2024, producing full year adjusted operating income and adjusted EPS in the top half of our guidance range.” DaVita ( DVA ) also anticipates supply dynamics to return to normal in the first quarter.

Meanwhile, the sale by Berkshire Hathaway ( BRK/A ) was part of a share repurchase agreement, under which DaVita ( DVA ) is committed to buying back enough shares every quarter to keep Berkshire’s stake at 45%. Berkshire Hathaway ( BRK/A ) has been a shareholder in DaVita ( DVA ) since the last quarter of 2011, as per Reuters.

DaVita ( DVA ) stock closed 2.9% higher at $177.06 on Thursday. It surged more than 43% over the past year.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.