THC - Tenet's Q2 bottom line beat take sting out of revenue guidance revision; shares up 4%
- While Tenet's Q2 2022 non-GAAP net income and EPS easily beat analyst expectations , the rest of the year may not be as fruitful as the managed care company also lowered its net operating revenue guidance for the year.
- Shares are up 4% in after-hours trading.
- Non-GAAP net income of $163M beat consensus estimate of $93M, while EPS of $1.50 beat a consensus of $0.83.
- However, overall net income of $179M was a 30% decline from the year-ago period.
- Net operating revenue of $4.64B was a 6% drop from Q2 2022.
- Tenet noted that in April, the company suffered a cybersecurity incident. This had a negative impact of $100M to adjusted EBITDA in the quarter.
- Looking at full-year 2022 results, Tenet ( NYSE: THC ) sees net revenue between $19B and to $19.4B, down from a previous $19.5B to $19.9B. Consensus is $19.73B.
- Adjusted EPS from continuing operations and adjusted EBITDA estimates for the year remain unchanged.
- Seeking Alpha's Quant Rating views Tenet ( THC ) as a hold with high marks for profitability, valuation, and momentum .
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Tenet's Q2 bottom line beat take sting out of revenue guidance revision; shares up 4%