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

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  • 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.

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Image and article originally from www.benzinga.com. Read the original article here.