Benzinga | Oct 21, 2021 12:11PM EDT

Tenet Achieves Quarterly Operating Income Of $1B, Raises FY21 Outlook

* Tenet Healthcare Corp (NYSE:THC) saw many of its key financial metrics improve in Q3 FY21.

* Adjusted EPS came in at $1.99, more than double than $0.64 a year ago and ahead of the Wall Street estimate of $1.02.

* Net operating revenue hit $4.9 billion, up 7.4% Y/Y, beating the consensus of $4.81 billion.

* Adjusted EBITDA was $855 million versus $551 million posted in the last year's quarter.

* Hospital segment revenue grew by 6% Y/Y to $4 billion, attributable to higher volumes and higher patient acuity.

* Tenet's ambulatory segment recorded $666 million in revenue, an increase of 17.9% Y/Y.

* Same-hospital adjusted admissions increased 4.4% Y/Y; same-hospital net patient service revenue per adjusted admission improved 6.2%.

* Same-facility system-wide ambulatory surgical cases increased 6.8%.

* During Q3, Tenet completed the sale of five of its hospitals for $1.1 billion.

* Tenet ended the quarter with an operating income of $1 billion compared to $271 million posted a year ago.

* Outlook: Tenet forecasts FY21 adjusted EPS of $6.15 - $6.38 (prior view $5.23 - $5.73) versus the consensus of $5.57.

* THC sees sales of $19.5 billion - $19.8 billion ($19.25 billion - $19.65 billion expected earlier) against the consensus of $19.66 billion.

* Tenet sees Q4 Adjusted EPS of $1.29 - $1.52 versus the consensus of $1.73.

* It sees Q4 net operating revenues of $4.871 billion - $5.171 billion against the consensus of $5.04 billion.

* Price Action: THC shares closed higher by 1.86% at $65.65 on Wednesday.