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Sep 30, 2023
Tenet Healthcare Q3 2023 Earnings Report
Tenet Healthcare's Q3 2023 performance was driven by sustained revenue growth and effective cost management.
Key Takeaways
Tenet Healthcare reported a strong Q3 2023, with net income of $101 million and adjusted EPS of $1.44. The company benefited from same-facility revenue growth and cost controls across its ambulatory care and hospital segments. The FY 2023 Adjusted EBITDA outlook was raised.
Net income from continuing operations available to common shareholders was $101 million, or $0.94 per diluted share.
Adjusted diluted earnings per share from continuing operations was $1.44.
Consolidated Adjusted EBITDA was $854 million, including $3 million of grant income.
Ambulatory Care Adjusted EBITDA increased 16.0% over third quarter 2022, reaching $370 million.
Tenet Healthcare
Tenet Healthcare
Tenet Healthcare Revenue by Segment
Revenue by Segment
Ambulatory Care Revenue
CapyFin.comHospital Operations and Services Revenue
CapyFin.com Forward Guidance
Tenet provided its outlook for full year 2023 and fourth quarter 2023.
Positive Outlook
- Net operating revenues are expected to be in the range of $20.3 billion to $20.5 billion for FY 2023.
- Adjusted EBITDA is projected to be between $3.365 billion and $3.465 billion for FY 2023.
- Diluted income per common share from continuing operations is expected to be $4.25 to $5.06 for FY 2023.
- Adjusted diluted earnings per share from continuing operations are anticipated to be $5.43 to $6.05 for FY 2023.
- Free cash flow is projected to be $1.125 billion to $1.350 billion for FY 2023.
Challenges Ahead
- Net income from continuing operations available to Tenet common stockholders is projected to be $456 million to $541 million for FY 2023.
- Equity in earnings of unconsolidated affiliates is expected to be $205 million to $225 million for FY 2023.
- Depreciation and amortization is projected to be $870 million to $890 million for FY 2023.
- Interest expense is expected to be $895 million to $905 million for FY 2023.
- Income tax expense is projected to be $320 million to $335 million for FY 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income