Tenet Healthcare Posts Mixed Q4 Results

Healthcare services provider Tenet Healthcare (THC) has reported mixed results for the fourth quarter of 2021, as its earnings surpassed but revenues missed estimates.

Adjusted earnings during the quarter fell to $2.70 per share from $4.72 a year ago. The figure, however, surpassed analysts’ estimates of $1.52 per share.

During the quarter, Tenet’s net operating revenue decreased 1.2% year-on-year to $4.9 billion, lagging analysts’ estimates of $5 billion. The downside can be mainly attributed to a 3.8% fall in Hospital Operations and other income.

Additionally, Tenet announced plans to retire $700 million of 7.50% senior secured notes due in 2025, which will result in lowered interest payments of about $53 million.

For 2021, the company reported an adjusted net income of $823 million or $7.58 per share, compared to $842 million or $7.92 per share in 2020. Also, revenues climbed 10.5% year-over-year to $19.5 billion.

Tenet CEO Saum Sutaria, M.D., said, “With our ongoing expansion of USPI, we have become much more than a hospital company – acquiring ownership in or opening approximately 160 high-quality ambulatory facilities in the past year alone. Coupled with our solid performance across our hospitals as well as Conifer, and our commitment to high-quality care across all business units, we expect our performance trajectory to continue.”

Outlook

Looking ahead, Tenet anticipates first-quarter revenue to be in the range of $4.6 billion to $4.8 billion and adjusted diluted earnings per share to be in the range of $0.92 to $1.15.

For 2022, the company expects revenues to be in the range of $19.5 billion to $19.9 billion and adjusted diluted earnings per share between $5.86 and $7.05.

Wall Street’s Take

The Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 6 Buys and 3 Holds. The Tenet stock price prediction of $98.11 implies 40.2% upside from current levels. Shares of the company have rallied 54.1% over the past year.

Negative Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on Tenet, as 14.2% of investors on TipRanks decreased their exposure to THC stock over the past 30 days.

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