Tenet Healthcare Earnings: Here’s Why the Stock is Falling Now

Tenet Healthcare Corp. (NYSE:THC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.18%.

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Tenet Healthcare Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 36.54% to $0.33 in the quarter versus EPS of $0.52 in the year-earlier quarter.

Revenue: Rose 10.38% to $2.59 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tenet Healthcare Corp. reported adjusted EPS income of $0.33 per share. By that measure, the company beat the mean analyst estimate of $0.3. It beat the average revenue estimate of $2.47 billion.

Quoting Management: “Tenet generated strong earnings growth by rapidly adjusting costs in a soft volume environment in the first quarter,” said Trevor Fetter, president and chief executive officer. “Adjusted EBITDA grew by almost 17 percent, after excluding a non-recurring item which contributed to last year’s first quarter, and exceeded the mid-point of our Outlook range. After making adjustments for non-recurring items, earnings per share more than doubled. Our Conifer subsidiary continues to achieve its performance milestones and grew its EBITDA by 28 percent over last year’s first quarter.”

Key Stats (on next page)…

Revenue increased 11.28% from $2.33 billion in the previous quarter. EPS decreased 40% from $0.55 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.7 to a profit $0.78. For the current year, the average estimate has moved down from a profit of $2.88 to a profit of $2.75 over the last ninety days.

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