Tenet Healthcare Q3 2021 Earnings Report
Key Takeaways
Tenet Healthcare reported a net income of $448 million, or $4.12 per diluted share, compared to a net loss of $197 million, or $1.87 per share, in Q3 2020. Adjusted EBITDA reached $855 million, up from $551 million in the prior year. The company raised its full-year 2021 financial guidance, reflecting confidence in continued growth and strong cash flow generation.
Net income from continuing operations available to common shareholders was $448 million in Q3 2021, a significant increase from the $197 million net loss in Q3 2020.
Consolidated Adjusted EBITDA increased to $855 million in Q3 2021, compared to $551 million in Q3 2020.
Diluted earnings per share from continuing operations was $4.12 in Q3 2021, compared to a loss per share of $1.87 in Q3 2020; Adjusted diluted earnings per share from continuing operations of $1.99 in Q3 2021 compared to $0.64 in Q3 2020
Tenet raised its full-year 2021 outlook for net income, Adjusted EBITDA, and adjusted diluted earnings per share, indicating strong financial performance and positive trajectory.
Tenet Healthcare
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Tenet Healthcare Revenue by Segment
Forward Guidance
Tenet Healthcare provided its outlook for FY 2021, projecting net operating revenues between $19.5 billion and $19.8 billion, and Adjusted EBITDA between $3.275 billion and $3.325 billion.
Positive Outlook
- Net operating revenues are projected to be between $19.5 billion and $19.8 billion.
- Adjusted EBITDA is expected to be in the range of $3.275 billion to $3.325 billion.
- Diluted income per common share from continuing operations is forecasted to be between $7.09 and $7.50.
- Adjusted diluted earnings per share from continuing operations are anticipated to be between $6.15 and $6.38.
- Adjusted free cash flow is projected to be between $650 million and $850 million.
Challenges Ahead
- Interest expense is expected to be between $915 million and $925 million.
- Capital expenditures are projected to be between $675 million and $725 million.
- NCI cash distributions are estimated to be between $450 million and $470 million.
- Depreciation and amortization expenses are expected to be between $860 million and $870 million.
- Effective tax rate is estimated to be around 18%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income