Tenet Healthcare Clocks 40% Decline In Q4 Profit, Issues Q1 Guidance Below Consensus

Tenet Healthcare Corp's THC Q4 FY21 adjusted EPS came in at $2.70, down from $4.72 a year ago.

• Net operating revenue hit $4.86 billion, down 1.2% Y/Y, missing the consensus of $5.00 billion.
• Adjusted EBITDA was $1.02 billion versus $1.28 million posted in the last year's quarter.
• Hospital segment revenues were $3.91 billion, a decline of 3.8% primarily due to the sale of Miami-area hospitals, partially offset by higher patient acuity and improved pricing yield.
• Same-hospital net patient service revenues increased 1.7% Y/Y; same-hospital net patient service revenue per adjusted admission improved 1.7%.
• The Ambulatory segment revenues of $742 million increased 14.3%, primarily related to higher volumes, patient acuity, new service line growth, and additional revenues associated with the SurgCenter Development portfolio acquisition.
• Surgical business same-facility system-wide net operating revenues increased 7.7%, with cases up 4.4% and revenue per case up 3.2%.
• The company plans to retire the $700 million of its 7.50% senior secured notes due in 2025 using available cash on hand. 
• The company held $2.36 billion in cash and cash equivalents.
• Outlook: Tenet forecasts FY22 sales of $19.5 billion - $19.9 billion, below the consensus of $20.28 billion.
• The company expects adjusted EPS of $5.86 - $7.05, compared to the consensus of $6.62.
• For Q1 FY22, Tenet expects adjusted EPS of $0.92- $1.15, compared to the consensus of $1.43, with sales guidance of $4.6 billion - $4.8 billion, versus the consensus of $4.98 billion.
• Price Action: THC shares closed lower by 3.90% at $70.00 on Monday.