Yahoo Finance Tenet Healthcare (THC) Q1 Earnings Beat Estimates, Rise Y/Y
Tenet Healthcare Corporation THC delivered first-quarter 2020 adjusted net earnings of $1.28 per share, beating the Zacks Consensus Estimate by 433.3%. Further, the bottom line soared 113.3% year over year, mainly owing to operational performance in its business segments along with a favourable income tax benefit.
The results were partly offset by a decline in patient volumes in the last two weeks of March due to government order and cancellation of elective surgery following the COVID-19 outbreak.
Quarterly Operational Update
Net operating revenues of $4.5 billion slid 0.6% year over year due to lower contribution by Hospital operations and Conifer segments. Moreover, the top line missed the Zacks Consensus Estimate by 2.2% due to decline in surgeries.
The company reported net income from continuing operations of $94 million against the year-ago quarter’s net loss of $20 million. In the quarter under review, adjusted EBITDA was $585 million, down 6.1% year over year.
Tenet Healthcare Corporation Price, Consensus and EPS Surprise
Tenet Healthcare Corporation price-consensus-eps-surprise-chart | Tenet Healthcare Corporation Quote
Quarterly Segmental Details
Hospital & Other
Net operating revenues for the Hospital Operations and Other segment totaled $3.8 billion, down 0.7% year over year. This was due to the impact of coronavirus, which intensified in March 2020.
On a same-hospital basis, net patient revenues were $3.54 billion, down 0.4% year over year.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $342 million slipped 1.4% year over year.
Ambulatory
The Ambulatory segment generated net operating revenues of $490 million, up 2.1% year over year.
Additionally, the segment reported adjusted EBITDA of $156 million, down 11.9% year over year.
Conifer
Conifer’s revenues decreased 4.9% from the prior-year quarter to $332 million. This was primarily due to client attrition as a result of hospital divestitures by both Tenet and other customers.
The segment reported $87 million of adjusted EBITDA in the quarter under review, down 12.1% year over year.
The company is working on spinning off its Conifer segment.
Financial Position
As of Mar 31, 2020, Tenet Healthcare had cash and cash equivalents of $613 million, up 134% from the level at 2019 end.
The company exited the first quarter with $15.1 billion of long-term debt, up 3.4% from the level at 2019 end.
For the first quarter, net cash provided by operating activities was $129 million compared with $10 million in the year-ago period.
Zacks Rank
Tenet Healthcare has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the medical sector players that reported first-quarter results so far, UnitedHealth Group Incorporated’s bottom line UNH beat the Zacks Consensus Estimate while earnings of Centene Corporation CNC and HCA Healthcare, Inc. HCA missed the mark.
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