Tenet Beats On Q2 Earnings, Shares Slip On Underwhelming Guidance

Tenet Healthcare Corporation THC reported better-than-expected second-quarter earnings late Wednesday but gave weak guidance.

•  Q2 sales increased 36% YY to $4.9 billion, beating the consensus estimate of $4.8 billion.
• Adjusted EPS came in at $1.59, higher than $1.26 a year ago and ahead of the Wall Street estimate of $1.07.
• Adjusted EBITDA was $834 million than $732 million last year quarter.
• Net operating revenues in the Hospital segment were $4.1 billion in Q2'21, a growth of 32.6% Y/Y, primarily due to significantly higher volumes given the impact of the pandemic in Q2'20, as well as higher patient acuity and pricing yield.
• Same-hospital net patient service revenues were $3.7 billion, +33.1%.
• Same-hospital adjusted admissions increased 23.9% Y/Y; same-hospital net patient service revenue per adjusted admission up 7.4%. Same-facility system-wide ambulatory surgical cases up 68.2% Y/Y.
• Outlook: Tenet sees full-year EPS of $5.23-$5.73 vs. $4.16-$5.46 previously. The new $5.48 midpoint is above the consensus for $5.00, but that includes Q2's $0.50 beat.
• It sees sales of $19.25 billion $19.65 billion. Its new revenue midpoint of $19.45 billion is below the consensus of $19.61 billion.
• The hospital operator sees Q3 adjusted EPS of $0.73 - $1.06 on revenue of $4.6 billion - $4.8 billion. 
• Hospital stocks have been in good health, fueled by blowout HCA Healthcare earnings early Tuesday.
• Price Action: THC shares are down 3.1% at $70.00 during the premarket session on the last check Thursday.