Tenet Healthcare CorporationTHC reported first-quarter 2018 adjusted net income of 57 cents per share, outperforming the Zacks Consensus Estimate of a loss of 2 cents. The bottom line rebounded from the year-ago loss of 27 cents.
Tenet Healthcare Corporation Price, Consensus and EPS Surprise
First-quarter results benefited from solid performances across all its segments.
Quarterly Operational Update
Net operating revenues came in at $4.7 billion, down 2.4% from the prior-year quarter. However, the top line beat the Zacks Consensus Estimate by 2.4%.
Tenet Healthcare's same-hospital exchange admissions were 4,677, down 1.1% year over year.
Same-hospital exchange outpatient visits were 49,680, up 11.4% from the comparable quarter, last year.
Quarterly Segment Details
Hospital & Other
Net operating revenues in the Hospital Operations and Other segment decreased 4.1% from $3.9 billion a year ago. This downside is largely attributable to divestitures and a decline in health plan revenues.
On a same-hospital basis, patient revenues were $3.6 billion, up 6.7% year over year.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $402 million, up 30.1% year over year.
The Ambulatory segment generated net operating revenues of $498 million, up 9.5% year over year.
Additionally, the segment reported adjusted EBITDA of $165 million, up 7.8% year over year.
Conifer's revenues inched up 0.5% from the prior-year quarter to $404 million.
The segment reported $98 million of adjusted EBITDA in the quarter under review, up 50.8% year over year.
As of Mar 31, 2018, Tenet Healthcare had cash and cash equivalents of $974 million, up 59.4% from year-end 2017.
The company exited the first quarter with $14.2 billion of long-term debt, down 3.8% from year-end 2017.
Net cash provided by operating activities was $113 million, down 39.2% year over year.
Adjusted earnings per share are projected between $1.36 and $1.70, up from the earlier projection of 73cents-$1.07.
Tenet Healthcare forecasts revenues in the range of $17.9-$18.3 billion.
Adjusted EBITDA is expected between $2.55 billion and $2.65 billion.
Tenet Healthcare estimates adjusted free cash flow of $725-$925 million, up from $675-$875 million. It also raised the upper end of net cash provided by operating activities' guidance by $0.1 billion and now expects the same between $1.245 billion and $1.550 billion.
The company predicts revenues in the range of $4.475-$4.675 billion.
It expects adjusted EBITDA between $605 and $655 million.
Adjusted earnings per share from continuing operations are likely to range between 15 cents and 29 cents
Zacks Rank and Performance of Other Players
Tenet Healthcare carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Among other players from the HMO industry having reported first-quarter earnings so far, the bottom line of Anthem Inc. ANTM , Centene Corporation CNC and UnitedHealth Group Inc. UNH beat the respective Zacks Consensus Estimate.
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