Tenet Healthcare Corp Earnings: Swing to a Loss After Two Straight Profit Quarters

S&P 500 (NYSE:SPY) component Tenet Healthcare Corporation (NYSE:THC) swung to a loss in the fourth quarter, missing analysts’ forecast. 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 Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a loss of $76 million (17 cents per diluted share) in the quarter. The healthcare facilities company had net income of $74 million or 14 cents per share in the year-earlier quarter.

Revenue: Rose 4.8% to $2.41 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tenet Healthcare Corporation reported adjusted net income of 10 cents a share. By this measure, the company fell short of the mean analyst estimate of 13 cents per share. Analysts were expecting revenue of $2.4 billion.

Quoting Management: “We recorded our eighth consecutive year of growth in Adjusted EBITDA which grew to $1.145 billion in 2011, a 9.0 percent increase over 2010,” said Trevor Fetter, president and chief executive officer. “The growth would have been even stronger had we been able to close some of the favorable payer settlements we have been working on for a number of months. Because the settlements remain likely, we are raising our 2012 Outlook for Adjusted EBITDA to a new range of $1.225 billion to $1.350 billion. We also recorded our fifth consecutive quarter of growth in adjusted admissions which grew by 1.3 percent. The favorable growth in patient volumes, combined with strong pricing growth, enabled us to achieve a 5.4 percent increase in net operating revenues in the quarter.”

Key Stats:

Revenue has increased for four quarters in a row. Revenue increased 3.5% to $2.34 billion in the third quarter. The figure rose 3.1% in the second quarter from the year earlier and climbed 7.1% in the first quarter from the year-ago quarter.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 4 cents versus a mean estimate of net income of one cent per share.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the first quarter of the next fiscal year has risen to 19 cents per share from 18 cents. The average estimate for the fiscal year is 42 cents per share, down from 43 cents ninety days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com