Tenet Earnings Beat Estimates

Tenet Healthcare (THC Quote) posted third-quarter earnings Wednesday that beat Wall Street estimates, and said new hospitals would add to growth.

The health care services company earned $198 million, or 60 cents a share, up from $38 million, or 48 cents a share, in the year-ago period. The consensus of 20 analysts surveyed by Thomson Financial/First Call was for earnings of 58 cents a share.

Tenet, which is based in Santa Barbara, Calif., reported revenue of $3 billion, up from $2.8 billion in the year-ago quarter. It was the third consecutive quarter of rising revenue.

Increased cash flow allowed Tenet to cut debt by $188 million in the quarter. On Feb. 28, the company's total debt was $4.9 billion, down $1.1 billion from a year ago.

Tenet said it expects to complete its acquisition of a hospital in suburban Atlanta in the current quarter. The company has preliminary agreements to buy a two-hospital system in West Palm Beach, Fla. Tenet is also looking into purchasing a hospital in Easton, Pa.

On Tuesday, Tenet closed at $44 on the New York Stock Exchange. Its 52-week range is $22.87 to $47.