Hospital stocks plunged in trading on Friday after two leading hospital companies — HCA Healthcare Inc. and Tenet Healthcare Corp. — failed to meet investor expectations for the third quarter.
“HCA noted Q3 is likely the first normal quarter since the start of the pandemic and, as a result, wants three more months of data to assess the new normal,” she wrote in an investor note. “While we think this is fair given the macro environment, this level of uncertainty from a company like HCA will likely serve as a near-term overhang on the stock.”
Additionally, Tenet narrowed — and lowered — its guidance for the year, saying it now expects $19.00 billion to $19.20 billion in net operating revenue for the year, compared with previous guidance of $19.00 billion to $19.40 billion. The FactSet consensus is for $19.23 billion. The move has Tenet on track for its biggest percentage decrease since Nov. 4, 2008, when it fell 36.7%, according to the Dow Jones market data team. The stock has fallen for three straight sessions, shedding 30.3% of its value in that period.