Tenet Healthcare stock rises on Q3 earnings beat, raised outlook

NEW YORK - Tenet Healthcare Corporation (NYSE:THC ) reported third-quarter earnings that surpassed analyst expectations, prompting a 4% rise in its stock price. The healthcare services company also raised its full-year outlook, citing strong performance across its businesses.

For the third quarter, Tenet reported adjusted earnings per share of $2.93, significantly beating the analyst estimate of $2.35. Revenue came in at $5.12 billion, surpassing the consensus estimate of $5.05 billion and representing a YoY increase. The company's Consolidated Adjusted EBITDA for the quarter was $978 million, up 14.5% compared to the same period last year.

"Our businesses continue to produce strong results and generate robust free cash flow with same store revenue growth and profitability well above our expectations due to the focused execution of our strategy and disciplined operations," said Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet.

Tenet's Ambulatory Care segment showed particularly strong growth, with Adjusted EBITDA of $439 million, an 18.6% increase over the third quarter of 2023.

Looking ahead, Tenet raised its full-year 2024 Adjusted EBITDA outlook to a range of $3.9 billion to $4.0 billion, a $50 million increase from its previous guidance. For the fourth quarter, the company expects EPS between $2.69 and $3.31, with the midpoint slightly above the analyst consensus of $2.90.

The company also provided full-year 2024 EPS guidance of $11.12 to $11.73, above the consensus estimate of $10.74. However, Tenet's revenue guidance for both Q4 and full-year 2024 came in slightly below analyst expectations.

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Source: Investing.com