Tenet Healthcare Corp. (THC), the operator of 77 hospitals and 176 outpatient centers, sank the most in almost two years after its fourth-quarter forecast was less than analysts’ estimates because of slow patient admissions.
Tenet dropped 9.2 percent to $43.82 at 10:07 a.m. New York time, after touching $43.37 in the biggest intraday decline since December 2011. The shares of the Dallas-based company had gained 49 percent this year through yesterday.
Tenet forecast fourth-quarter earnings before interest, taxes, depreciation and amortization of as much as $450 million, excluding some items, in a statement yesterday. That was less than analysts’ average $482 million estimate, Frank Morgan, an analyst with RBC Capital Markets, wrote in a research note today.
“Management’s fourth-quarter 2013 guidance is below consensus and reflects continued soft inpatient volumes,” Morgan wrote, also pointing out a difficult reimbursement environment and the completion of Tenet’s $1.8 billion acquisition of Vanguard Health Systems Inc. The forecast, he said, “assumes minimal synergies captured in the fourth-quarter 2013.”
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