Hospitals Erase $5 Billion as Tenet, HCA Results Disappoint
- Tenet lowered its net operating revenue guidance for the year
- HCA posted quarterly revenue that narrowly missed consensus
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Stocks of hospital operators plunged Friday after earnings reports from Tenet Healthcare Corp. and industry-giant HCA Healthcare Inc. underwhelmed investors, wiping out more than $5 billion in market value across the group.
Tenet sank by 31%, the most since November 2008, after its net operating revenue guidance for the year was trimmed, taking the outlook below the average view on Wall Street. HCA fell 5.7% after its third-quarter results included revenue that narrowly missed consensus expectations. Peers Universal Health Services Inc. and Community Health Systems Inc. followed them lower, declining 4.3% and 14% respectively.