Updated with recent prices and additional stocks.
) -- With some better-than-expected summer returns under its belt,
saw fit to revise its earnings forecast upwards.
On Monday morning, Tenet moved its adjusted earnings before interest, taxes, depreciation and amortization for 2009 to between $900 million to $950 million. In August, the hospital operator had forecast a range of between $810 million to $875 million.
In early morning trading, Tenet shares were changing hands at $5.99, up 54 cents or 9.9%.
In a statement, CEO Trevor Fetter said that typically sluggish results during the late summer months were, instead, "stronger than anticipated" through August, warranting the upgrade.
"In the last few months we have seen trends in payer and patient mix, bad debt expense, and volume growth that are favorable relative to our prior expectations," Trevor added. "Our pricing trends remain positive and consistent with prior expectations."
According to the company's press release, admissions grew by 0.2% between July 1 to September 8 compared to the same period last year. Tenet went on to report that paying admissions were flat, while admissions for commercial managed care dropped by 4.1%. Admissions for charity and uninsured went higher by 3.5%.
Meanwhile, outpatient visits jumped by 3.8% between July 1 and August 31, with paying outpatient visits going higher by 4.4% and commercial managed care outpatient visits increasing by 0.8%. Tenet also reported that charity and uninsured outpatient visits dropped by 1%.
Elsewhere, shares of
Community Health Systems
Universal Health Services
were adding 6%, 2.3% and 2.5%, respectively, just after the opening bell.
-- Written by Sung Moss in New York
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