Tenet Healthcare Misses Estimates (THC)

Tenet Healthcare Corporation THC on Tuesday morning released financial results that missed Wall Street expectations. Tenet Healthcare Corporation reported that its 3rd quarter net income was $932 million, or $1.68 per share, compared to a net loss of $3 million, or 1 cent per share, a year earlier. Excluding special items, the company posted a loss of 1 cent per share. Revenue for the quarter came in at $2.26 billion, the same as a year earlier. A poll of analysts conducted by Thomson Reuters showed an average Wall Street estimate of expected earnings of 4 cents per share, on revenue of $2.33 billion. Chief financial officer Biggs Porter said, “In response to the continued adverse impact of a soft economy on our volumes, we took aggressive actions on our operations. As a result of these actions, our adjusted EBITDA was essentially flat after excluding the impact of certain items. Last year's third quarter benefited from the recognition of $20 million in favorable items, including favorable cost report adjustments, HMO distributions, and pension adjustments. In contrast, this year's third quarter adjusted EBITDA was reduced by $16 million as a result of the aggregate net impact of discount rate effects on malpractice and workers' compensation expense related to the declining interest rate environment, incremental costs related to our healthcare information technology initiative, and net of favorable, but lower, cost report adjustments.” Tenet Healthcare Corporation (THC) ended the previous trading session at $4.30 per share. Analysts covering the company's stock have a consensus price target of $6.67 per share. Read more from Benzinga's Company news.