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S&P 500 (NYSE:SPY) component Tenet Healthcare Corporation (NYSE:THC) dropped to a second quarter loss, but results topped 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 Corporation Earnings Cheat Sheet
Results: Reported a loss of $20 million (8 cents per diluted share) in the quarter. Tenet Healthcare Corporation had a net income of $63 million or 10 cents per share in the year-earlier quarter.
Revenue: Fell 4.6% to $2.27 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Tenet Healthcare Corporation beat the mean analyst estimate of 5 cents per share. It fell short of the average revenue estimate of $2.48 billion.
Quoting Management: “We are pleased with our second quarter results which came in above our expectations,” said Trevor Fetter, president and chief executive officer. “This strong performance was driven by growth in patient volumes and revenues. This was our seventh consecutive quarter in which adjusted admissions growth was positive. Several targeted service lines including major trauma and neuro-, thoracic-, oncology and vascular surgeries, contributed to volume growth in the quarter. And, on July 1 Conifer Health Solutions launched phase one of its ground-breaking partnership with Catholic Health Initiatives.”
Revenue has been on the decline for three quarters in a row. In the first quarter, revenue declined 6.2% to $2.35 billion while the figure fell 29.1% in the fourth quarter of the last fiscal year from the year earlier.
The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 13 cents versus a mean estimate of net income of 8 cents per share.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 12 cents a share to 9 cents over the last ninety days. The average estimate for the fiscal year is 56 cents per share, a rise from 52 cents ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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