Tenet Healthcare (THC) Stock Down in After-Hours Trading Despite Earnings Beat

Tenet Healthcare (THC) shares are lower in after-hours trading despite reporting 2015 third quarter results that beat expectations.
By Amanda Albright ,

NEW YORK (TheStreet) -- Tenet Healthcare (THC) - Get Report stock is down by 2.65% to $31.90 in after-hours trading on Monday, despite the healthcare company's strong 2015 third quarter earnings results. 

Tenet Healthcare reported third quarter earnings of 29 cents per share on revenue of $4.69 billion for the most recent quarter.

Analysts surveyed by Thomson Reuters were expecting the company to report earnings of 27 cents per share on revenue of $4.66 billion.

"We delivered revenue and EBITDA consistent with our outlook for the quarter and generated strong adjusted free cash flow," Tenet Healthcare CEO Trevor Fetter said in a statement. "While we experienced pressure on lower acuity inpatient hospital admissions, we continued to drive increases in higher-acuity admissions."

Tenet Healthcare projected 2015 earnings of $1.76 per share to $2.11 per share.

The company also announced a share repurchase program for up to $500 million of the company's outstanding stock.

Separately, TheStreet Ratings team rates TENET HEALTHCARE CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

We rate TENET HEALTHCARE CORP (THC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and generally higher debt management risk.

You can view the full analysis from the report here: THC

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