Tenet Healthcare (NYSE: THC) reported Q2 EPS of ($0.17), $0.02 worse than the analyst estimate of ($0.15). Revenue for the quarter came in at $4.8 billion versus the consensus estimate of $4.9 billion.

• Reported a net loss from continuing operations attributable to Tenet shareholders of $56 million or $0.56 per diluted share. Adjusted diluted earnings per share from continuing operations was a loss of $0.17.
• Adjusted EBITDA was $570 million, which included $23 million of gains primarily from the sale of home health and hospice assets.
• 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 totaled $346 million.
• Ambulatory Care segment revenue increased 3.8% on a same-facility system-wide basis, with cases decreasing 0.5% and revenue per case increasing 4.3%. Adjusted EBITDA for the Ambulatory segment was $164 million, an 18.0% increase, representing a margin of 34.7%.
• Revenue from Conifer Health Solutions increased 3.6% with revenue from third parties increasing 9.4%. Conifer generated $60 million of Adjusted EBITDA, a 4.8% decrease, representing a margin of 15.0%.
• Net cash provided by operating activities in the first half of 2017 was $401 million, a $181 million decline when compared to $582 million in the first half of 2016. Adjusted Free Cash Flow was $117 million in the first half of 2017, a $151 million decline when compared to $268 million in the first half of 2016.
• Updated 2017 Outlook to reflect a range of factors, including the divestiture of the Company’s hospital operations in Houston, which closed on July 31, 2017. The updated Outlook for 2017 includes net income from continuing operations attributable to Tenet common shareholders of a loss of $115 million to a loss of $90 million, Adjusted EBITDA of $2.450 billion to $2.550 billion, a diluted loss per share from continuing operations of $1.14 to a loss of $0.89 and Adjusted diluted earnings per share from continuing operations of $0.69 to $0.99.

GUIDANCE:

Tenet Healthcare sees FY2017 EPS of $0.69-$0.99, versus the consensus of $1.12. Tenet Healthcare sees FY2017 revenue of $19.1-19.4 billion, versus the consensus of $19.6 billion.

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