We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tenet Healthcare's (THC) Earnings Beat in Q3, Improve Y/Y
Read MoreHide Full Article
Tenet Healthcare Corporation (THC - Free Report) delivered third-quarter 2020 adjusted net earnings of 64 cents per share, beating the Zacks Consensus estimate by 94%. Further, the bottom line increased 10.3% year over year, mainly owing to lower costs and a solid Ambulatory segment.
The third quarter was more challenging than the second as COVID positive inpatient census soared by around 64% in late July and August.
Quarterly Operational Update
Net operating revenues of $4.5 billion dipped 0.2% year over year due to weak contribution from Hospital operations as well as Conifer segments. However, the top line beat the Zacks Consensus Estimate by 4.8%.
The company reported adjusted net income from continuing operations of $68 million, comparing favorably with the year-ago quarter’s net income of $67 million. In the quarter under review, adjusted EBITDA was $621 million, up 12.7% year over year.
Operating expenses fell 0.9% year over year to $4.2 billion owing to lower salaries, wages and benefits, and litigation and investigation costs.
Tenet Healthcare Corporation Price, Consensus and EPS Surprise
Net operating revenues from the Hospital Operations and Other segment totaled $3.8 billion, down 1.2% year over year. This was due to the impact of coronavirus, which shrank patient volumes.
On a same-hospital basis, net patient revenues were $3.5 billion, down 1.7% year over year.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $297 million decreased 13.2% year over year.
Ambulatory
The Ambulatory segment generated net operating revenues of $565 million in the third quarter, up 8.2% year over year on the back of higher acuity and new service line growth.
Additionally, the segment reported adjusted EBITDA of $228 million, up 10.1% year over year.
Conifer
Conifer’s revenues dipped 3.3% from the prior-year quarter to $325 million. This was primarily due to client attrition as a result of hospital divestitures by both Tenet and other customers along with the COVID-19 adversity on volumes.
The segment reported $96 million of adjusted EBITDA in the quarter under review, up 6.7% year over year.
Financial Position
As of Sep 30, 2020, Tenet Healthcare had cash and cash equivalents of $3.03 billion, up from $262 million at 2019 end. The company maintained enough liquidity to meet the COVID-19 pandemic requirements. The company doesn’t have any borrowings under its $1.9 billion line-of-credit facility.
The company exited the third quarter with $15.6 billion of long-term debt, up 7.96.7% from the level at 2019 end. At the end of the third quarter, net cash provided by operating activities was $2.9 billion compared with $713 million in the year-ago period.
Here are some companies worth considering from the healthcare sector as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Canopy Growth Corporation (CGC - Free Report) has an Earnings ESP of +25.16% and a Zacks Rank #3, currently.
CareDx, Inc. (CDNA - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank of 2, presently.
Teladoc Health, Inc. (TDOC - Free Report) has an Earnings ESP of +9.77% and a Zacks Rank of 3 at present.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Tenet Healthcare's (THC) Earnings Beat in Q3, Improve Y/Y
Tenet Healthcare Corporation (THC - Free Report) delivered third-quarter 2020 adjusted net earnings of 64 cents per share, beating the Zacks Consensus estimate by 94%. Further, the bottom line increased 10.3% year over year, mainly owing to lower costs and a solid Ambulatory segment.
The third quarter was more challenging than the second as COVID positive inpatient census soared by around 64% in late July and August.
Quarterly Operational Update
Net operating revenues of $4.5 billion dipped 0.2% year over year due to weak contribution from Hospital operations as well as Conifer segments. However, the top line beat the Zacks Consensus Estimate by 4.8%.
The company reported adjusted net income from continuing operations of $68 million, comparing favorably with the year-ago quarter’s net income of $67 million. In the quarter under review, adjusted EBITDA was $621 million, up 12.7% year over year.
Operating expenses fell 0.9% year over year to $4.2 billion owing to lower salaries, wages and benefits, and litigation and investigation costs.
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 from the Hospital Operations and Other segment totaled $3.8 billion, down 1.2% year over year. This was due to the impact of coronavirus, which shrank patient volumes.
On a same-hospital basis, net patient revenues were $3.5 billion, down 1.7% year over year.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $297 million decreased 13.2% year over year.
Ambulatory
The Ambulatory segment generated net operating revenues of $565 million in the third quarter, up 8.2% year over year on the back of higher acuity and new service line growth.
Additionally, the segment reported adjusted EBITDA of $228 million, up 10.1% year over year.
Conifer
Conifer’s revenues dipped 3.3% from the prior-year quarter to $325 million. This was primarily due to client attrition as a result of hospital divestitures by both Tenet and other customers along with the COVID-19 adversity on volumes.
The segment reported $96 million of adjusted EBITDA in the quarter under review, up 6.7% year over year.
Financial Position
As of Sep 30, 2020, Tenet Healthcare had cash and cash equivalents of $3.03 billion, up from $262 million at 2019 end. The company maintained enough liquidity to meet the COVID-19 pandemic requirements. The company doesn’t have any borrowings under its $1.9 billion line-of-credit facility.
The company exited the third quarter with $15.6 billion of long-term debt, up 7.96.7% from the level at 2019 end. At the end of the third quarter, net cash provided by operating activities was $2.9 billion compared with $713 million in the year-ago period.
Zacks Rank
Tenet Healthcare currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Medical Sector Releases
Here are some companies worth considering from the healthcare sector as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Canopy Growth Corporation (CGC - Free Report) has an Earnings ESP of +25.16% and a Zacks Rank #3, currently.
CareDx, Inc. (CDNA - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank of 2, presently.
Teladoc Health, Inc. (TDOC - Free Report) has an Earnings ESP of +9.77% and a Zacks Rank of 3 at present.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>