DaVita shares dive on earnings decline

Shares of DaVita Inc., the El Segundo-based operator of dialysis clinics, dropped 9.1% on Friday after the company reported third-quarter profit that missed analysts’ estimates and trimmed its 2008 forecast.

The announcement Thursday that the company would replace its chief financial officer also contributed to the decline.

Medicare cut payments for anemia drugs given to patients receiving dialysis, a blood-cleansing procedure. Price cuts and lower reimbursement rates for Amgen Inc.’s anemia drug Epogen contributed to an earnings decline that missed analysts’ estimates by a penny, analyst Andreas Dirnagl said.

DaVita shares fell $5.95 to $59.50. The stock has gained 8.1% in the last year.

The company reported third-quarter profit of 83 cents a share, missing the 84-cent estimate of analysts surveyed by Bloomberg.

DaVita narrowed its forecast of operating income for 2007 to $800 million to $810 million, and said Controller James Hilger would be acting CFO after Mark Harrison steps down.

DaVita expects operating income for the fourth quarter of $190 million to $200 million.