Tenet Healthcare Earnings Cheat Sheet: Improved Trend in Patient Volumes

S&P 500 (NYSE:SPY) component Tenet Healthcare Corporation (NYSE:THC) reported its results for the first quarter. Tenet Healthcare Corporation 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 the healthcare facilities company fell to $82 million (14 cents/share) vs. $94 million (17 cents/share) a year earlier. A decline of 12.8% from the year earlier quarter.

Revenue: Rose 7.1% to $2.51 billion YoY.

Actual vs. Wall St. Expectations: THC fell in line with the mean analyst estimate of 14 cents/share. Estimates ranged from 9 cents per share to 17 cents per share.

Quoting Management: “Our strong first quarter results reflect solid performance in virtually every aspect of our business,” said Trevor Fetter, president and chief executive officer. “Volume growth was a clear highlight in the quarter. Growth in both paying admissions and total admissions turned positive in the quarter. This is the second consecutive quarter in which we have improved the trend in year-over-year changes in patient volumes. We were also very pleased with the robust performance in outpatient volumes with outpatient visits growing by 6.1 percent. Surgeries grew by 0.9 percent. Other factors contributing to the strong quarter included managed care pricing growth and improved performance on bad debt expense, which declined to 7.3 percent of revenues.”

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 (HCA), LifePoint Hospitals, Inc. (NASDAQ:LPNT), UnitedHealth Group Inc. (NYSE:UNH), HEALTHSOUTH Corp. (NYSE:HLS), and Select Medical Hldgs. Corp. (NYSE:SEM)

Stock Performance: Shares of THC are down 4 cents from the previous close of $6.69.


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