Tenet sees stock sink after increasing job cut target

Shares of Dallas-based Tenet Healthcare dipped 3.9 percent in afternoon trading on Monday after the company increased its workforce reduction target to 2,000 employees, according to MarketWatch.

In a presentation to investors at the J.P. Morgan Healthcare Conference in San Francisco Monday, Tenet Executive Chairman and CEO Ron Rittenmeyer said the company would cut 2,000 jobs as part of a $250 million cost reduction initiative. That was an increase from October, when Tenet said it would eliminate 1,300 jobs under the cost-cutting plan.

Separately, on Monday, Tenet lowered its 2018 adjusted earnings per share guidance range due to tax code changes.

"While [earnings per share] will be lower due to the limitation on interest expense deductibility, this does not impact free cash flow, and over the next two to three years, we expect these changes will positively affect EPS due to the lower tax rate," Mr. Rittenmeyer said in a statement.

More articles on healthcare finance:

Year in review: 7 rural hospital closures in 2017
Tenet to cut 700 more jobs, says $1B divestiture plan is on track
Colorado hospitals now required to post prices: 3 things to know

© Copyright ASC COMMUNICATIONS 2018. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months