Tenet Healthcare Beats Earnings Est - Analyst Blog
30 4월 2013 - 9:18PM
Zacks
Tenet Healthcare Corp. (THC) reported
first-quarter 2013 income from continuing operations of $34 million
or 33 cents per share, surpassing the Zacks Consensus Estimate of
28 cents per share. Operating earnings improved from $13 million or
15 cents in the year-ago quarter.
Growth in revenues, largely driven by improved pricing, fueled
the year-over-year improvement along with cost control
measures.
Net loss, including $75 million from an industry-wide Medicare
inpatient prospective payment settlement and a loss from
discontinued operations of $2 million or 2 cents a share, along
with impairments, restructuring charges, acquisition-related costs
and the loss on early extinguishment of debt, was $88 million or 85
cents per share in the reported quarter.
Results compared unfavorably with $58 million or 53 cents earned
in the year-ago quarter. Net income for the first quarter of 2012
included $1 million or 1 cent per share related to income from
discontinued operations.
Operational Update
Net operating revenues stood at $2.39 billion, up 3.7% from
$2.30 billion in the prior-year quarter. However, reported revenues
lagged the Zacks Consensus Estimate of $2.62 billion.
During the reported quarter, Tenet Healthcare’s net patient
revenues per adjusted admission increased 1.6% on a year-over-year
basis to $11,884, primarily due to improved terms of commercial
managed care contracts and increased Medicare reimbursement
rates.
Total admissions declined 4% from the year-ago quarter level,
while adjusted admissions declined 2.5% year over year due to lower
inpatient admissions, which offset higher outpatient visits.
Surgeries increased 8.8%, while emergency department visits
improved 3.1%.
Bad debt expense, as a percentage of revenues, increased 40
basis points year over year to 8.0%.
Tenet Healthcare posted adjusted earnings before interest,
taxes, depreciation and amortization (EBITDA) of $274 million in
the reported quarter, up 16.6% from $235 million in the prior-year
quarter. Adjusted EBITDA margin was 11.5%, declining 200 basis
points year over year.
Financial Position
Tenet Healthcare exited the reported quarter with cash and cash
equivalents of $95 million, sinking from $364 million as of Dec 31,
2012. As of Mar 31, 2013, total assets of Tenet Healthcare were
$8.9 billion and shareholder equity was $969 million.
Net cash outflow from operating activities in the reported
quarter was $32 million, contracting from $42 million outflow in
the year-ago quarter.
Tenet Healthcare’s capital expenditures decreased to $133
million in the quarter from $136 million in the prior-year
quarter.
Share Buyback
Tenet Healthcare spent $100 million to repurchase 2.5 million
shares under its $500 million share buyback program during the
reported quarter.
Guidance
Tenet Healthcare announced its adjusted EBITDA guidance of $325
million to $375 million for the second quarter of 2013. The
guidance includes $54 million associated with the expected approval
of the managed care portion of the 30-month California Provider Fee
program along with $31 million from the recognition of Health
Information Technology (HIT) incentives.
Adjusted EBITDA guidance for 2013 was affirmed at $1.325–$1.425
billion. Operating income is projected at about $821–$951
million.
Additionally, shares outstanding as of Dec 31, 2013 are expected
to be approximately 104 million. Consequently, adjusted earnings
per share for 2013 are expected to be about $2.31–$3.31 for
2013.
Further, net income of Tenet Healthcare in 2013 is anticipated
at around $114–$224 million. Net operating revenue is expected to
be around $9.8–$10.1 billion.
Zacks Rank
Tenet Healthcare carries a Zacks Rank #4 (Sell). Other companies
in the medical sector worth considering are VCA Antech
Inc. (WOOF) – Zacks Rank #1 (Strong Buy), Centene
Corp. (CNC) – Zacks Rank #2 (Buy) and Coventry
Health Care Inc. (CVH) – Zacks Rank #2 (Buy).
CENTENE CORP (CNC): Free Stock Analysis Report
COVENTRY HLTHCR (CVH): Free Stock Analysis Report
TENET HEALTH (THC): Free Stock Analysis Report
VCA ANTECH INC (WOOF): Free Stock Analysis Report
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