(Reuters) – Tenet Healthcare Corp on Monday raised its core-earnings forecast for the year following a strong third quarter, betting on a recovery in surgical procedures from pandemic lows and an improvement in contract labor costs as staffing shortages ease.
The hospital operator sees 2023 core earnings of $3.37 billion to $3.47 billion from its prior forecast of $3.31 billion $3.46 billion.
Hospital operators are expected to see a profit boost as more people opt for surgical procedures such as hip and knee replacements that were delayed due to the pandemic.
Tenet expects adjusted profit per share of $5.43 to $6.05 in 2023, compared with its prior per-hare forecast of $5.18 to $6.03.
Tenet is betting on growth in its ambulatory care unit, which deals with patients who are not bedridden and do not require overnight hospitalization.
The company’s hospital business segment, which mainly includes its acute care and specialty hospitals, saw a 3.7% rise in net operating revenue.
On an adjusted basis, Tenet reported net income of $1.44 per share for the quarter ended Sept. 30, beating estimates of $1.20 per share.
The company posted third-quarter net operating revenue of $5.07 billion, above the estimates of $5.02 billion.
Shares of the Texas-based company rose 3.1% to $54.90 in after market trading.
(Reporting by Pratik Jain in Bengaluru; Editing by Anil D’Silva)
