Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Tenet Sinks Most Since 2011 as Forecast Misses Estimates

Nov. 5 (Bloomberg) -- Tenet Healthcare Corp., 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 8.8 percent to $44 at the close in New York time, its biggest one-day decline since December 2011. The shares of the Dallas-based company have increased 36 percent this year.

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.”

To contact the reporter on this story: Meg Tirrell in New York at mtirrell@bloomberg.net

To contact the editor responsible for this story: Reg Gale at rgale5@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.