Tenet Healthcare Earnings: Beats Estimates Despite Falling Profit

Although S&P 500 (NYSE:SPY) component Tenet Healthcare Corporation’s (NYSE:THC) net income fell in the first quarter from a year earlier, profit exceeded analysts’ expectations. 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 First Quarter

Results: Net income for Tenet Healthcare Corporation fell to $58 million (13 cents per share) vs. $73 million (14 cents per share) a year earlier. This is a decline of 20.5% from the year-earlier quarter.

Revenue: Rose 2.2% to $2.35 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tenet Healthcare Corporation beat the mean analyst estimate of 8 cents per share. It fell short of the average revenue estimate of $2.48 billion.

Quoting Management: “Our volume growth metrics again rank among the very strongest in the investor-owned sector,” said Trevor Fetter, president and chief executive officer. “It is especially encouraging that much of our volume growth is concentrated in the service lines we targeted for growth, including orthopedic and spinal surgeries, major trauma, and gastrointestinal disorders. The quarter’s performance makes it abundantly clear that when individuals need immediate medical care they are increasingly turning to their local Tenet hospital. This is evidenced by the 5.2 percent increase in emergency department visits we achieved in the quarter. Our solid first quarter performance allowed us to raise our 2012 Outlook for Adjusted EBITDA by an additional $25 million. This was our second Outlook increase this year.”

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of 10 cents versus a mean estimate of net income of 13 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 13 cents a share to 10 cents over the last thirty days. Over the past three months, the average estimate for the fiscal year has climbed from 49 cents per to share to 53 cents.

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

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