Tenet stock rises after detailing coronavirus impact on hospitals

Tenet Healthcare Corp. THC, +2.68% shares rose more than 2% in the extended session Monday after the hospital and ambulance operator reported its first quarter of earnings during the coronavirus pandemic. The company reported first quarter net income from continuing operations of $93 million, or 88 cents a share, versus a loss of $12 million, which amounts to 11 cents a share, a year ago. Adjusted for impairment and restructuring charges, among other things, earnings were $1.28 a share. Revenue fell to $4.52 billion from $4.55 billion in the year-ago period. The company said that as a result of government orders to limit non-essential activities, patient volumes for emergency room visits, admission and other elective procedures declined significantly beginning in mid-March. Tenet said that while it took steps to acquire personal protective equipment and other supplies it encountered significantly higher prices. The company said it currently believes it has enough supplies. Tenet said that it has reduced planned capital expenditures by $300 million, reducing discretionary spending and furloughing employees due to the lower patient volumes. Tenet said it had $2.2 billion in cash as of May 1 and has received $1.5 billion in advanced Medicare payments, which will have to be repaid within the next year, and a $345 million grant from the Coronavirus Aid, Relief and Economic Security Act. Tenet stock has fallen 16% in the past year, as the S&P 500 index SPX, +0.42% declined 3.9%.
https://www.marketwatch.com/story/tenet-stock-rises-after-detailing-coronavirus-impact-on-hospitals-2020-05-04