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Tenet Healthcare (THC) Q1 Earnings & Revenues Beat Estimates

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

Tenet Healthcare Corporation Price, Consensus and EPS Surprise | Tenet Healthcare Corporation Quote

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.

Ambulatory Segment

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 Segment

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.

Financial Position

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.

2018 Outlook

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.

Q218 Outlook

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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