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Tenet Healthcare Corporation (THC)

- NYSE
  • Feb. 24, 2014, 12:35 PM
    • Humana (HUM +9.4%) surges to new 52-week highs after saying proposed rate cuts to Medicare Advantage plans weren't as bad as expected.
    • Health insurers who run Medicare Advantage face a 3.55% base payment cut next year, the U.S. government said late Friday; HUM now estimates the final reduction will be 3.5%-4% after projecting a 6%-7% reduction during its Q4 conference call earlier this month.
    • “Although we still believe rate pressure of this magnitude will present a significant challenge to the company/industry, it is certainly much better” than previous estimates, a Susquehanna analyst says.
    • Among the five largest publicly traded health insurance carriers, Medicare accounted for ~30% of earnings last year, Goldman Sachs says, with HUM and UnitedHealth (UNH +2.7%) the biggest players in the Advantage program.
    • Other insurers: WLP +3.7%, HNT +3.5%, WCG +1.5%.
    • Hospital stocks also are gaining: THC +3.1%, UHS +1.5%.
    | Comment!
  • Feb. 24, 2014, 12:10 AM
  • Feb. 23, 2014, 5:35 PM
  • Feb. 10, 2014, 5:13 AM
    • Around 4.8M people aged 18-64 get no government help to buy medical insurance - because they earn too little to qualify for federal subsidies. However, they earn too much to receive benefits under state programs.
    • The gap is the result of 24 states deciding not to expand Medicaid coverage under the Affordable Care Act.
    • However, some states are revisiting their policies in order to cover the hole, which hospitals such as UAB Health System see as a threat to their revenues.
    • More on Obamacare
    • Hospital operators: HCA, CYH, THC, UHS, HMA, LPNT.
    • ETFs: XLV, XHE, VHT, FXH, IHF, IHI, IYH, PTH, RYH, PSCH, RXL, RXD, XHS.
    | 3 Comments
  • Jan. 13, 2014, 3:32 PM
    • "Options markets suggest this will be one of the most important earnings seasons in 10 years for stock pickers given low expected correlation and limited pre-positioning," says Goldman analyst John Marshall.
    • "We expect outsized profitability for call buying strategies on single stocks this quarter," he adds, noting options markets are actually pricing in a lower earnings-day move than any time on record for the average stock. "We expect earnings surprises to spark unexpectedly large stock moves."
    • The average earnings-day move last quarter was 3.5x as large as the average daily move, he says, greater than any other time in the past 17 years.
    • Goldman analysts see above-consensus reports from KORS, RYL, TIF, EOG, PXD, WNR, BBT, BX, LAZ, STI, BMY, THC, CMI, DOW, STZ, ARUN, OLED, QCOM, and XLNX.
    • Goldman's below the Street on ANN, IGT, MAT, COL, JOY, and MSFT.
    | 11 Comments
  • Jan. 7, 2014, 3:33 AM
    • National healthcare spending grew less than 4% for the fourth year in a row in 2012, rising 3.7% to $2.8T, a report by the Centers for Medicare & Medicaid Services shows.
    • As a proportion of the total economy, expenditure edged down to 17.2% from 17.3%.
    • The authors of the report said that the continued slow increase in spending was due to the lingering impact of the recession but that Obamacare has had a limited effect. However, the White House said the figures vindicated the President's signature policy.
    • The authors were also cautious about whether the trend will continue, or whether growth will return to the higher levels experienced prior to the recession.
    • The cost of hospital care rose 4.9% in 2012 and that for doctors' services and outpatient clinics 4.6%, although spending on prescription drugs increased just 0.4%, due to patent expiries.
    • Relevant tickers: AET, HNT, HUM, UNH, WLP, MOH, HCA, CYH, THC, UHS, HMA, LPNT, WAG, CVS, BIOS, RAD, MHS, PMC, OCR, MCK, CAH, ABC, ESRX, MHS, CAH.
    • ETFS: XLV, XHE, VHT, FXH, IHF, IHI, IYH, PTH, RYH, PSCH, RXL, RXD, XHS.
    | 4 Comments
  • Jan. 5, 2014, 3:48 AM
    • Early reports from health providers and online medical booking service ZocDoc indicate that demand for care from those who bought insurance under Obamacare has been modest so far.
    • There have been fears that the technical problems of the government's HealthCare.gov Web site would cause a flood of patients who thought they had bought insurance to request care only to find that they weren't yet covered.
    • The actual pace of demand should give insurers more time to process the applications that they need to enter into their systems and issue membership cards.
    • More on Obamacare.
    • Health insurers: AET, HNT, HUM, UNH, WLP, MOH.
    • Hospital operators: HCA, CYH, THC, UHS, HMA, LPNT.
    • Pharmacies: WAG, CVS, BIOS, RAD, MHS, PMC, OCR.
    • ETFS: XLV, XHE, VHT, FXH, IHF, IHI, IYH, PTH, RYH, PSCH, RXL, RXD, XHS.
    | 53 Comments
  • Jan. 1, 2014, 4:22 AM
    • More than 2.1M people have signed up for Obamacare-mandated health insurance, which has gone into effect today. That's an addition of 1.6M consumers in December, but somewhat below the 3.3M that was initially projected.
    • Administration officials also don't know how many people have paid, while insurers haven't received all the information they need about those who have bought plans. As a result, much confusion is expected when patients turn up for appointments, a situation the government is hoping to help alleviate with a toll-free call center.
    • Around 3.9M people are judged eligible for Medicaid and a related children's insurance program, although it's not known how many have signed up. Another 3M young Americans have coverage under their parents' plans.
    • More on Obamacare.
    • Health insurers: AET, HNT, HUM, UNH, WLP, MOH.
    • Hospital operators: HCA, CYH, THC, UHS, HMA, LPNT.
    • ETFS: XLV, XHE, VHT, FXH, IHF, IHI, IYH, PTH, RYH, PSCH, RXL, RXD, XHS.
    | 27 Comments
  • Dec. 17, 2013, 6:24 PM
    • Shares of some of the largest U.S. hospital management companies fell after a Citigroup survey of November hospital traffic showed admissions at their weakest level ever.
    • The report showed inpatient admissions down 4%-5% last month, saying a new Medicare billing rule calling for inpatient stays to require at least two nights' stay appears to be hurting hospitals.
    • Although investors generally have been upbeat on the sector because of the implementation of Obamacare, which promises to deliver many more insured patients to hospitals' doors, Citi calls the insurance exchange rollout "paralyzing" for hospitals.
    • Among hospital operators today: HCA -3.4%, CYH -3.4%, THC -1.8%, UHS -0.8%, HMA -0.4%, LPNT -0.2%.
    | Comment!
  • Nov. 25, 2013, 3:55 PM
    • Apple (AAPL), Google (GOOG), and AIG are the most popular (long) holdings of hedge funds, according to Goldman's latest hedge fund monitor, which analyzed the positions of 783 hedge funds with $1.7T of gross assets. Hedge fund holdings of AIG, however, account for 14 of the company's float compared to negligible amounts for Apple and Google.
    • The 20 most concentrated hedge fund holdings as defined by the percent of equity cap owned by the funds has consistently been a significant outperformer, according to Goldman. In order: AN, STZ, JCP, FDO, THC, HRB, BEAM, MU, NWSA, VRSN, CBG, NFLX, GT, TSO, ETFC, MSI, WPX, WYN, HES, CCI. The top 20 last quarter is here.
    • Overall, the studied hedge funds' performance leaves a bit to be desired, with average return of 6% YTD. Fewer than 5% outperformed the S&P 500, and 20% of funds posted an absolute loss.
    | 15 Comments
  • Nov. 8, 2013, 9:19 AM
    • Amarin (AMRN) upgraded to Buy from Neutral at Citi. Price target unchanged at $2.50.
    • Salix Pharmaceuticals (SLXP) upgraded to Buy from Neutral at Janney. Price target hiked to $95 from $60. See: SLXP in deal for SNTS.
    • Tenet Healthcare (THC) initiated at Market Perform at FBR. Price target is $49.
    • Universal Health Services (UHS) initiated at Outperform at FBR. Price target is $94.
    • Quest Diagnostics (DGX) initiated at Market Perform at FBR. Price target is $68.
    • HCA Holdings (HCA) initiated at Outperform at FBR. Price target is $53.
    • Lifepoint (LPNT) initiated at Market Perform at FBR. Price target is $55.
    | 1 Comment
  • Nov. 6, 2013, 9:16 AM
    • "Unfortunately, for the third year in a row Tenet Healthcare (THC) has much in common with their Dallas neighbor, quarterback Tony Romo of the Cowboys, in our view. Both can be above-average operators but consistently fail to come through in the fourth quarter." That's Wells Fargo's Gary Lieberman with his take on THC's Q4 EBITDA guidance ($400-450M).
    • THC downgraded to Market Perform from Outperform.
    • Price target cut to $41-47 from $50-55.
    • See also: Q3 results, Q3 summary, CC transcript
    | Comment!
  • Nov. 5, 2013, 9:39 AM
    • Tenet Healthcare (THC -7.7%) is trading sharply lower out of the gate following its Q3 report.
    • For the period, adjusted EBITDA growth was 7.1%, compared to 16.7% growth in Q2 and 16.6% growth in Q1. In Q3 2012, adjusted EBITDA rose 40% (the most in a decade) so this might have been a tough compare.
    • Adjusted admissions fall 0.5% while emergency department visits and outpatient visits rise 3.1% and 3.5% respectively.
    • Adjusted EBITDA outlook for Q4: $400-450M (so Y/Y growth of between 19% and 34%) reflecting "assumptions for continuing soft inpatient volume growth and a less attractive payer mix." (PR)
    | Comment!
  • Nov. 4, 2013, 5:50 PM
    • Tenet Healthcare (THC): Q3 EPS of $0.45 in-line.
    • Revenue of $2.62B (+7.9% Y/Y) beats by $0.24B. (PR)
    | Comment!
  • Oct. 15, 2013, 5:15 PM
    • Tenet Healthcare (THC) gets more upbeat analyst coverage on the heels of last week's Goldman upgrade.
    • Barclays reinstated the shares at Overweight.
    • Price target is $55, representing a ~19% upside from today's close.
    | Comment!
  • Oct. 8, 2013, 7:47 AM
    • "Our estimates assume a strong inpatient and outpatient revenue growth driven by pricing and admissions," says analyst Brian Zimmerman. He also expects significant growth in the Conifer business driven by contract wins.
    • "Longer term, we expect the VHS acquisition to be a strategic positive for the company, as it expands THC’s presence in new markets and provides opportunities to realize synergies via cost management, use of Conifer’s business solutions and supply chain management."
    • FY2013 EPS estimate is cut a penny to $2.27. 2014 is boosted to $3.84 from $3.20, and 2015 is raised to $5.20 from $3.79.
    • THC +1.8% premarket.
    | Comment!
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Company Description
Tenet Healthcare Corpis a health care services company whose subsidiaries and affiliates operate regionally focused, integrated health care delivery networks.
Sector: Healthcare
Industry: Hospitals
Country: United States