Tenet Healthcare Corp. (THC), a diversified healthcare services company, is trading at $68.00 at the time of writing after increasing 3.58% in aftermarket trading sessions. On Wednesday, THC stock closed the day at $65.65 after an unwavering increase of 1.86% during regular trading hours. The increase has come after the company announced financial results for the third quarter of the fiscal year 2021.
Q3 2021 financial highlights
On Wednesday, THC announced the financial results for the third quarter of the fiscal year 2021, which ended on 30th September 2021. The company generated revenue of $4.89 billion during the quarter against $4.55 billion for the same quarter of 2020. The operating expenses for the three-month period were $1.051 billion against 41.058 billion for the same period of 2020. The operating income for the three-month period was $1.01 billion, against $271 million for the same period of 2020. The net income for the quarter was $578 million against $106 million for the same period of 2020. The company had cash and cash equivalents of $2.29 billion on 30th September. Commenting on the results, Saum Sutaria, M.D., Chief Executive Officer of Tenet Healthcare said that the results demonstrate that the company is building upon the momentum of prior quarters and cementing the progress of its multi-year journey.
THC and Cigna partnership
On 2nd September, THC and Cigna Corporation announced to extend and expand their network access via signing a new multi-year contract. The agreement would provide the customers of Cigna with continued in-network access through 2025 to Tenet’s hospitals, outpatient centers, and physician clinics. The contract has an effective date of 1st January 2022. Commenting on the development, Ronald A. Rittenmeyer, Executive Chairman of Tenet Healthcare said that the pandemic has brought forth the challenges for company’s patients and providers, which underscore the importance of uninterrupted in-network access to quality physicians and care facilities Cigna members now and trust.
What lies ahead for THC?
Statistics reveal that during the last three months, THC has declined over 5%, which depicts a stabilizing performance by the stock. Analysts believe that the stock’s EPS would increase over 250% during the next fiscal year. Based on that, potential investors should keep a close eye on fluctuations of THC.
