Tenet Healthcare Earnings: Everything You Must Know Now

Tenet Healthcare Corp. (NYSE:THC) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Tenet Healthcare Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 65% to $0.66 in the quarter versus EPS of $0.40 in the year-earlier quarter.

Revenue: Rose 6.93% to $2.42 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tenet Healthcare Corp. reported adjusted EPS income of $0.66 per share. By that measure, the company missed the mean analyst estimate of $0.69. It missed the average revenue estimate of $2.44 billion.

Quoting Management: “Tenet drove a 16.7 percent increase in Adjusted EBITDA through outstanding cost control and revenue growth,” said Trevor Fetter, president and chief executive officer. “We grew both outpatient visits and emergency department volumes in the quarter, and we doubled revenues in our Conifer services business. We are revising our Outlook for 2013 Adjusted EBITDA to growth of 4 to 8 percent reflecting softer than anticipated inpatient volumes. Planning for the integration of our Vanguard Health Systems acquisition is proceeding smoothly, and we expect to close the transaction before the end of this year.”

Key Stats (on next page)…

Revenue increased 1.47% from $2.39 billion in the previous quarter. EPS increased 100% from $0.33 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.68 and has not changed. For the current year, the average estimate has moved down from a profit of $2.82 to a profit of $2.77 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)