Tenet Healthcare Earnings: Everything You Must Know Now

Tenet Healthcare Corp. (NYSE:THC) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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Tenet Healthcare Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.33% to $0.52 in the quarter versus EPS of $0.48 in the year-earlier quarter.

Revenue: Rose 55.09% to $2.53 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tenet Healthcare Corp. reported adjusted EPS income of $0.52 per share. By that measure, the company missed the mean analyst estimate of $0.68. It beat the average revenue estimate of $2.34 billion.

Quoting Management: “The fourth quarter provided a strong finish to 2012, which became our ninth consecutive year of consistent earnings growth, with compound annual EBITDA growth of 15 percent,” said Trevor Fetter, president and chief executive officer. “Strong revenue growth and disciplined cost control were once again hallmarks of our financial performance. Net revenues grew by 7.3 percent reflecting strong volume increases and continued pricing strength. Our volume growth was one of the strongest in the investor-owned healthcare provider sector, and we recorded our ninth consecutive quarter of positive growth in adjusted admissions. Volume growth included another strong quarter of growth in outpatient surgeries which increased by 13.9 percent. Cost control was excellent with hospital operations restraining expense growth to just 1.9 percent per adjusted admission, and Conifer Health Solutions, Tenet’s services business, reported another solid quarter contributing $31 million of Adjusted EBITDA.”

Key Stats (on next page)…

Revenue increased 13.96% from $2.22 billion in the previous quarter. EPS increased 85.71% from $0.28 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.65 to a profit $0.63. For the current year, the average estimate has moved down from a profit of $1.98 to a profit of $1.97 over the last ninety days.

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