Tenet Healthcare Posts Lower Sales, Profits On Unfavorable Impact Of Cyber Attack

Zinger Key Points
  • Same-hospital net patient service revenue per adjusted admission decreased 0.2% due to the cybersecurity incident.
  • Tenet has insurance coverage and filed a claim, with $5 million of insurance proceeds received in Q2.
  • Tenet Healthcare Corp's THC Q2 FY22 adjusted EPS came in at $1.50, down from $1.59 a year ago and beating the management guidance of $1.18-$1.45 and the consensus of $1.05.
  • Net operating revenue reached $4.64 billion, down 6.4% Y/Y, missing the consensus of $4.82 billion and the management guidance of $4.8 billion - $5.0 billion.
  • Hospital segment sales declined 11% to $3.65 billion primarily due to the sale of Miami-area hospitals and the unfavorable impact of the cybersecurity incident.
  • The cybersecurity incident contributed to same-hospital adjusted admissions for Q2 decreasing 5.3% Y/Y.
  • The company estimates the cyber attack had an unfavorable impact of approximately $100 million on adjusted EBITDA during Q2. Adjusted EBITDA was $843 million versus $834 million a year ago.
  • Net income reached $38 million, down from $119 million last year.
  • Outlook: Tenet forecasts Q3 FY22 sales of $4.7 billion - $4.9 billion, compared to the consensus of $4.92 billion.
  • It expects an adjusted EPS of $1.14 - $1.36, compared to the consensus of $1.29.
  • For FY22, the company expects sales of $19 billion - $19.4 billion, below the prior guidance of $19.5 billion - $19.9 billion and the consensus of $19.74 billion.
  • It sees an adjusted EPS of $5.80 - $7.00, compared to the earlier guidance of $5.86 - $7.03 and the consensus of $6.22.
  • Price Action: THC shares closed 4.76% higher at $62.50 during after-hours trading on Thursday.
Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceHealth CareGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!