- Tenet Healthcare Corp's (NYSE:THC) Q1 FY22 adjusted EPS came in at $1.93, up from $1.30 a year ago and beating the management guidance of $0.92 - $1.15.
- Net operating revenue hit $4.74 billion, marginally down 0.75% Y/Y, beating the consensus of $4.71 billion. Management expected sales of $4.6 billion - $4.8 billion.
- Adjusted EBITDA reached $888 million, exceeding the Company's Q1'22 Outlook range, versus $777 million in Q1 FY21.
- Hospital segment revenues were $3.98 billion, a decline of 3.8% primarily due to the sale of Miami-area hospitals, partially offset by improved pricing yield.
- The Ambulatory segment revenues of $738 million increased 14.2%, primarily related to higher volumes, new service line growth, and the SurgCenter acquisition.
- The Company has early retired $824 million of debt in 2022, including its previously announced retirement of $700 million of 7.5% senior secured notes due in 2025. It expects annual cash interest savings of $61 million.
- Tenet held $959 million in cash and cash equivalents.
- Outlook: Tenet forecasts Q2 FY22 sales of $4.8 billion - $5.0 billion, compared to the consensus of $4.91 billion.
- It expects adjusted EPS of $1.18 - $1.45, compared to the consensus of $1.54.
- Price Action: THC shares are up 0.69% at $89.62 on the last check Thursday.
