Tenet Healthcare (NYSE: THC) reported Q1 EPS of $0.54, $0.25 better than the analyst estimate of $0.29. Revenue for the quarter came in at $4.55 billion versus the consensus estimate of $4.51 billion.

• Tenet reported a net loss from continuing operations attributable to Tenet common shareholders of $27 million or $0.26 per diluted share in the first quarter of 2019 due in part to a $47 million pre-tax loss from the extinguishment of debt or $0.45 per diluted share.
• Adjusted diluted earnings per share from continuing operations were $0.54 in the first quarter of 2019, above the high end of the Company’s Outlook.
• Adjusted EBITDA was $613 million in the first quarter of 2019, above the midpoint of the Company’s Outlook. Adjusted EBITDA consisted of $337 million in the Hospital Operations and other segment, $177 million in the Ambulatory Care segment and $99 million in the Conifer segment.
• Hospital segment same-hospital net patient service revenues grew 1.9 percent in the first quarter of 2019: net revenue per adjusted admission increased 1.3 percent; adjusted admissions increased 0.6 percent; and admissions decreased 0.1 percent.
• Ambulatory Care segment same-facility system-wide surgical revenue grew 4.2 percent in the first quarter of 2019, with surgical cases up 2.8 percent and surgical revenue per case up 1.4 percent. Adjusted EBITDA less facility-level noncontrolling interest increased 9.8 percent.
• Conifer segment revenues decreased 13.6 percent in the first quarter of 2019 primarily as a result of divestitures by Tenet and other customers; Adjusted EBITDA margins increased 410 basis points to 28.4 percent reflecting the ongoing improvement in Conifer’s cost structure.
• Updating 2019 Outlook for net income and earnings per share; reiterating previously provided 2019 Outlook for revenue, Adjusted EBITDA, Adjusted EPS and Adjusted Free Cash Flow.

Ronald A. Rittenmeyer, Executive Chairman and CEO, said, “We had a solid start to the year, building on the many positive changes we made across the enterprise in 2018. These changes include the continued addition of new leadership as well as an infusion of fresh thinking, which are helping to transform our approach to operations and overall enterprise culture. In the first quarter, we continued to make progress in each of our business segments through rigorous implementation of our strategic initiatives, and we were pleased with our performance, both operationally and financially. As we move through the year, we remain focused on revenue growth and expense management to sharpen operations and our competitive position.”

GUIDANCE:

Tenet Healthcare sees Q2 2019 EPS of $0.29-$0.63, versus the consensus of $0.52. Tenet Healthcare sees Q2 2019 revenue of $4.4-4.7 billion, versus the consensus of $4.49 billion.

Tenet Healthcare sees FY2019 EPS of $2.08-$2.59, versus the consensus of $2.28. Tenet Healthcare sees FY2019 revenue of $18-18.4 billion, versus the consensus of $18.18 billion.

For earnings history and earnings-related data on Tenet Healthcare (THC) click here.