Tenet Healthcare 3Q profit falls on expenses

Tenet Healthcare reports smaller third-quarter profit on buyout, restructuring costs

Associated Press

DALLAS (AP) -- Hospital operator Tenet Healthcare Corp. reported a smaller third-quarter profit Monday due in part to costs associated with its $4.3 billion acquisition of Vanguard Health Systems, which closed last month.

The company's revenue increased 8.4 percent to $2.41 billion from $2.22 billion in the prior-year period as emergency department visits and surgeries increased.

The company's net income was $28 million, or 27 cents per share, down from $40 million, or 37 cents per share, in the same period last year. Excluding one-time acquisition, restructuring and other charges the company would have earned $46 million, or 45 cents per share.

That was just below the average estimate of analysts polled by FactSet, who were looking for 46 cents per share on sales of $2.39 billion.

Tenet operates 77 hospitals and 176 outpatient centers.

Shares of Tenet Healthcare Corp. fell $1.26, or 2.6 percent, to $47 in after-hours trading. Shares closed earlier in regular trading at $48.26.

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