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Jun 30, 2024

Tenet Healthcare Q2 2024 Earnings Report

Tenet Healthcare's Q2 2024 earnings significantly exceeded expectations, driven by volume and revenue growth and strong operating performance.

Key Takeaways

Tenet Healthcare reported strong second-quarter results, exceeding expectations with a net income of $259 million, or $2.64 per diluted share. Adjusted diluted earnings per share were $2.31. The company's consolidated Adjusted EBITDA increased by 12.1% year-over-year to $945 million. The Board of Directors authorized a new $1.5 billion share repurchase program and raised the full-year financial outlook.

Net income available to common shareholders was $259 million, or $2.64 per diluted share.

Adjusted diluted earnings per share was $2.31.

Consolidated Adjusted EBITDA of $945 million increased 12.1% over the prior year.

Ambulatory Care Adjusted EBITDA of $447 million increased 20.8% over the prior year.

Total Revenue
$5.1B
Previous year: $5.08B
+0.4%
EPS
$2.66
Previous year: $1.21
+120.1%
Admissions growth
5.2%
Previous year: 3%
+73.3%
Gross Profit
$671M
Previous year: $4.19B
-84.0%
Cash and Equivalents
$2.88B
Previous year: $934M
+208.4%
Free Cash Flow
$602M
Previous year: $466M
+29.2%
Total Assets
$29.3B
Previous year: $27.2B
+7.8%

Tenet Healthcare

Tenet Healthcare

Tenet Healthcare Revenue by Segment

Forward Guidance

Tenet provided financial outlook for the third quarter and full year 2024.

Positive Outlook

  • Net operating revenues are expected to be in the range of $20.6 billion to $21.0 billion.
  • Net income available to Tenet common stockholders is projected to be between $2.825 billion and $2.930 billion.
  • Adjusted EBITDA is anticipated to be in the range of $3.825 billion to $3.975 billion.
  • Diluted income per common share is expected to be between $28.83 and $29.90.
  • Free cash flow is projected to be between $1.100 billion and $1.350 billion.

Revenue & Expenses

Visualization of income flow from segment revenue to net income