S&P 500 (NYSE:SPY) component Tenet Healthcare Corporation (NYSE:THC) reported net income above Wall Street’s expectations for the second quarter. Tenet Healthcare Corporation is an investor-owned health care services company that mainly operates general hospitals and related health care facilities.
Tenet Healthcare Earnings Cheat Sheet for the Second Quarter
Results: Net income for Tenet Healthcare Corporation rose to $63 million (11 cents per share) vs. $31 million (5 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.
Revenue: Rose 3.1% to $2.37 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: THC beat the mean analyst estimate of 9 cents per share. Analysts were expecting revenue of $2.4 billion.
Quoting Management: “Our results for the second quarter extended the positive momentum we reported in recent quarters,” said Trevor Fetter, president and chief executive officer. “Net revenues grew by 3.1 percent reflecting growth of 1.0 percent in adjusted admissions and 1.1 percent growth in surgeries. These increases provide additional evidence that our growth initiatives are gaining traction. Based on the solid performance for the first half of the year, we are reconfirming our Outlook for 2011 Adjusted EBITDA in the existing range of $1.175 billion to $1.275 billion.”
The company has now topped analyst estimates for the last three quarters. It beat the mark by 2 cents in the first quarter and by 2 cents in the fourth quarter of the last fiscal year.
Revenue has now gone up for three straight quarters. In the first quarter, revenue rose 7.1% to $2.51 billion while the figure rose 1.8% in the fourth quarter of the last fiscal year from the year earlier.
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).
(Source: Xignite Financials)