Tenet Healthcare 2Q profit more than doubles
Tenet Healthcare Corp. on Tuesday said its second-quarter earnings more than doubled, as the hospital operator benefited from pricing improvements and saw several favorable trends.
The Dallas company reported net income of $55 million, or 11 cents per share, in the three months that ended June 30. That compares to earnings of $25 million, or 5 cents per share, in last year's quarter.
Earnings from continuing operations were 9 cents per share excluding a penny per share of charges. Analysts surveyed by FactSet expected earnings of 8 cents per share, on average.
Revenue rose 3 percent to $2.37 billion from $2.3 billion a year ago. Analysts expected revenue of $2.4 billion.
The company's adjusted earnings before interest, taxes, depreciation, and amortization climbed 3.4 percent, as Tenet saw admissions at hospitals it operated for at least a year grow 1 percent.
The hospital operator also said net inpatient revenue per admission grew 1.5 percent, and surgeries climbed slightly more than 1 percent. Outpatient visits climbed nearly 3 percent to slightly more than 1 million in the quarter. Total uninsured and charity admissions fell about 2 percent.
The company said improvements in its performance offset pressures from government reimbursement rate declines.
In the quarter, Tenet also fended off an acquisition bid from a larger rival, Franklin, Tenn.-based Community Health Systems Inc. Community said in May it had withdrawn its offer to buy Tenet for $7.25 per share, or about $4 billion, and also rescinded its effort to put nominees on Tenet's board of directors.
The announcement came after Tenet rejected the bid, which represented an increase of about 21 percent from a previous offer of $6 per share.
Tenet operated 49 acute care hospitals at the end of the quarter.
Its shares fell 10 cents, or 1.8 percent, to $5.34 in morning trading Tuesday.