DOW JONES NEWSWIRES
Tenet Healthcare Corp. (THC) boosted its full-year outlook as it
said preliminary first-quarter earnings came in well above
analysts' estimates.
Shares surged 34% in premarket trading Tuesday to $1.90. Through
Monday the stock had lost nearly 80% of its value the past seven
months as the hospital operator struggles to gain its footing after
settling government probes in 2006 over past pricing plans.
The company has changed management, shed hospitals and made
improvements that earned it good-quality ratings from the
Department of Health and Human Services. Still, it faces
high-supply costs, delays in key asset sales and high debt
levels.
Tenet expects first-quarter earnings of 37 cents a share,
including a net of 29 cents in gains. Analysts surveyed by Thomson
Reuters expected break-even results. However, it expects revenue of
$2.28 billion, below analysts' views of $2.32 billion.
The company also boosted its full-year view on earnings before
interest, taxes, depreciation and amortization to $760 million to
$825 million from $735 million to $800 million.
"Excellent cost control, including a sustained decline in
malpractice expense, contributed to a very strong first quarter and
the highest operating margin we've reported in six years," Chief
Executive Trevor Fetter said.
Tenet saw same-hospital admissions fall 1.3% in the first
quarter as same-hospital managed-care admissions declined 3.2%.
Same-hospital outpatient visits edged up 0.7%.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com