Tenet Healthcare Corp (NYSE: THC) shares fell hard Tuesday after the company posted a wider-than-expected Q2 loss and issued a weak FY17 forecast.
The Dallas-based health-care company reported Monday a net loss from continuing operations attributable to Tenet shareholders of $56 million in the second quarter of 2017 compared to a $44 million net loss from continuing operations in the second quarter of 2016. Adjusted EBITDA was $570 million in the second quarter of 2017 compared to $629 million in the second quarter of 2016.
THC also declared same-hospital patient revenue increased 0.4% and reflects a 1.9% increase in revenue per adjusted admission offset by a 1.4% decline in adjusted admissions. Hospital segment Adjusted EBITDA totalled $346 million.
Net operating revenue in the Hospital Operations and other segment was $4.060 billion, down 0.1% from $4.066 billion in the second quarter of 2016; these revenue figures exclude revenue generated by the Company’s health plans in both periods. The decline was primarily due to a decline in adjusted admissions and Tenet not being able to record revenue under the California Provider Fee Program in the second quarter of 2017.
As for the immediate future, THC’s revised Outlook for 2017 includes: Revenue of $19.1 billion to $19.4 billion; Net income from continuing operations attributable to Tenet common shareholders ranging from a loss of $115 million to a loss of $90 million; Adjusted EBITDA of $2.450 billion to $2.550 billion.
As indicated, the stock got cuffed around Tuesday; within minutes of the final bell, the price was lower by $2.21, or 13.2%, to $14.48.
