Tenet Healthcare Shares Up More Than 13% After Q1 Results

Shares of Tenet Healthcare Corp. rallied late Monday after the company swung to a smaller-than-expected adjusted loss for the first quarter and announced a deal to sell its acute-care hospitals and related facilities in Houston for $725 million to HCA Holdings Inc. . Tenet reported a net loss from continuing operations of $52 million, or 52 cents a share, in the quarter, compared with a loss of $55 million in the first quarter of 2016. Adjusted for one-time items, Tenet lost $27 million, or 27 cents a share, from continuing operations, versus an adjusted per-share net income of 45 cents a share a year ago, it said. Net operating revenues fell to $4.8 billion, from $5 billion in the year-ago period. Analysts polled by FactSet had expected an adjusted loss of 52 cents a share on sales of $4.8 billion in the period. Tenet said its transaction with HCA is expected to be completed in the third quarter of 2017, subject to regulatory approvals and closing conditions. Tenet also raised its adjusted 2017 earnings by $25 million to between $2.5 billion to $2.6 billion due to a change in accounting for pension expenses, the company said. Tenet guided for revenue between $19.7 billion to $20.1 billion for the year. Shares had ended off 2% in the regular session.