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Sep 30, 2024
Tenet Healthcare Q3 2024 Earnings Report
Tenet Healthcare reported strong results in the third quarter of 2024, raising its 2024 financial outlook.
Key Takeaways
Tenet Healthcare reported strong third quarter results with net income available to common shareholders of $472 million, or $4.89 per diluted share, and adjusted diluted earnings per share of $2.93. Consolidated Adjusted EBITDA increased 14.5% over the third quarter of 2023, driven by strong ambulatory care performance. The company raised its full year 2024 Adjusted EBITDA outlook by $50 million.
Net income available to common shareholders was $472 million, or $4.89 per diluted share, including an after-tax gain of $209 million from hospital divestitures.
Adjusted diluted earnings per share was $2.93.
Consolidated Adjusted EBITDA of $978 million increased 14.5% over the third quarter of 2023.
Ambulatory Care Adjusted EBITDA of $439 million increased 18.6% over the third quarter of 2023.
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 Healthcare's outlook for full year 2024 reflects the sale of hospitals in Coastal South Carolina, California, and Alabama. The company anticipates net operating revenues between $20.6 billion and $20.8 billion, and Adjusted EBITDA between $3.9 billion and $4.0 billion.
Positive Outlook
- Net operating revenues are expected to be between $20.6 billion and $20.8 billion.
- Net income available to Tenet common stockholders is projected to be between $3.093 billion and $3.193 billion.
- Adjusted EBITDA is anticipated to be in the range of $3.9 billion to $4.0 billion.
- Diluted income per common share is expected to be between $31.56 and $32.58.
- Adjusted diluted earnings per share are projected to be between $11.12 and $11.73.
Challenges Ahead
- The outlook reflects the sale of three Coastal South Carolina hospitals, six California hospitals, and five Alabama hospitals.
- Depreciation and amortization are expected to be between $820 million and $840 million.
- Interest expense is projected to be between $820 million and $830 million.
- Income tax expense is estimated to be between $1.185 billion and $1.215 billion.
- NCI cash distributions are projected to be between $725 million and $775 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income