Tenet Healthcare Earnings: Revenue and Profit Climbs

S&P 500 (NYSE:SPY) component Tenet Healthcare Corporation (NYSE:THC) reported its results for the third quarter. Tenet Healthcare is an investor-owned health care services company that mainly operates general hospitals and related health care facilities.

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Tenet Healthcare Corporation Earnings Cheat Sheet

Results: Net income for Tenet Healthcare Corporation rose to $40 million (37 cents per share) vs. $6 million (5 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.

Revenue: Rose 6% to $2.43 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tenet Healthcare Corporation beat the mean analyst estimate of 36 cents per share. It fell short of the average revenue estimate of $2.48 billion.

Quoting Management: “Strong revenue growth and disciplined cost control continue to drive our solid financial performance,” said Trevor Fetter, president and chief executive officer. “Adjusted EBITDA increased 40 percent to create the Company’s strongest third quarter in the last ten years. Net revenues grew by 5.8 percent reflecting strong volume increases and continued pricing strength. Our volume growth was one of the strongest in the investor-owned healthcare provider sector, and we recorded our eighth consecutive quarter of positive growth in adjusted admissions. Volume growth was led by a 6.3 percent increase in outpatient surgeries. Cost control was excellent. Conifer Health Solutions, Tenet’s services business, reported another solid quarter contributing $24 million to Adjusted EBITDA.”

Key Stats:

The company has now topped analyst estimates for the last three quarters. It beat the mark by 20 cents in the second quarter and by 20 cents in the first quarter.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the fourth quarter is $1.04 per share, a drop from $1.05. At $2.34 per share, the average estimate for the fiscal year has fallen from $2.38 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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