Tenet Says Profit Will Exceed Analysts’ Estimates

Hospital chain Tenet Healthcare Corp. on Monday lifted expectations for earnings in its fiscal third quarter, helped in part by more frequent visits by older patients and cost controls.

The Santa Barbara-based company said profit from operations for the quarter ended Feb. 28 would “comfortably” exceeded the average estimate of 81 cents a share of analysts surveyed by Thomson Financial/First Call. The company did not provide an exact estimate. In the year-ago period, Tenet earned 60 cents a share.

It plans to release its results April 4.

Tenet has been concentrating on more profitable services such as cardiology to attract patients.

It also reduced interest expense by repaying some debt. Admissions to hospitals owned more than a year rose about 2%, even though the U.S. flu season was the weakest in years, Tenet said.

Tenet reiterated that it expected earnings from operations to grow at least 35% in fiscal 2002. Analysts surveyed by First Call expect Tenet to earn $3.12 a share.

Tenet shares rose 69 cents to $61 on the New York Stock Exchange.

Bloomberg News