Tenet Healthcare Corp Earnings Cheat Sheet: Profit Falls

S&P 500 (NYSE:SPY) component Tenet Healthcare Corporation (NYSE:THC) reported a lower net income in the third quarter compared with a year earlier. 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 Third Quarter

Results: Net income for the healthcare facilities company fell to $6 million (2 cents per share) vs. $938 million ($1.68 per share) a year earlier. This is a decline of 99.4% from the year earlier quarter.

Revenue: Rose 3.5% to $2.34 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: THC reported an adjusted net income of 4 cents a share. By that measure, the company beat the mean estimate of one cent per share. Analysts were expecting revenue of $2.33 billion.

Quoting Management: “Volume growth was very strong in our third quarter,” said Trevor Fetter, president and chief executive officer. “Adjusted admissions growth of 2.3 percent and surgery growth of 3.2 percent drove a 3.5 percent increase in net operating revenues. This top line growth was further leveraged by excellent cost control and attractive pricing increases in our new contracts with commercial managed care payers. Given this progress across our key performance metrics, we are pleased to reconfirm our 2011 EBITDA Outlook in a range of $1.175 billion to $1.275 billion.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 3.1% to $2.37 billion in the second quarter. The figure rose 7.1% in the first quarter from the year earlier and climbed 1.8% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 12 cents per share, up from 10 cents ninety days ago. The average estimate for the fiscal year is now 37 cents per share, down from 44 cents sixty days ago.

Competitors to Watch: Community Health Systems (NYSE:CYH), Health Management Associates, Inc. (NYSE:HMA), Universal Health Services, Inc. (NYSE:UHS), MedCath Corporation (NASDAQ:MDTH), SunLink Health Systems, Inc. (AMEX:SSY), HCA Holdings Inc (NYSE:HCA), LifePoint Hospitals, Inc. (NASDAQ:LPNT), UnitedHealth Group Inc. (NYSE:UNH), HEALTHSOUTH Corp. (NYSE:HLS), and Select Medical Hldgs. Corp. (NYSE:SEM).

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(Source: Xignite Financials)