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Tenet Healthcare Corporation (THC - Free Report) 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
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
Among other players from the HMO industry having reported first-quarter earnings so far, the bottom line of Anthem Inc. , Centene Corporation (CNC - Free Report) and UnitedHealth Group Inc. (UNH - Free Report) beat the respective Zacks Consensus Estimate.
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Tenet Healthcare (THC) Q1 Earnings & Revenues Beat Estimates
Tenet Healthcare Corporation (THC - Free Report) 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. , Centene Corporation (CNC - Free Report) and UnitedHealth Group Inc. (UNH - Free Report) beat the respective Zacks Consensus Estimate.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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