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Tenet Healthcare
🇺🇸 NYSE:THC
•
Dec 31, 2024

Tenet Healthcare Q4 2024 Earnings Report

Key Takeaways

Tenet Healthcare Corporation reported a strong fourth quarter with net income rising to $318 million and adjusted diluted EPS reaching $3.44. Net operating revenue declined to $5.072 billion due to hospital divestitures, but strong ambulatory growth and favorable payer mix partially offset the impact. Adjusted EBITDA improved to $1.048 billion, with a margin of 20.7%.

Total Revenue
$5.07B
Previous year: $5.38B
-5.7%
EPS
$3.44
Previous year: $2.42
+42.3%
Total Admissions Growth
5%
Previous year: 1%
+400.0%
Total Surgeries Growth
0.2%
Previous year: 0.8%
-75.0%
Adjusted Admissions Growth
3.1%
Previous year: 0.1%
+3000.0%
Gross Profit
$776M
Previous year: $721M
+7.6%
Cash and Equivalents
$3.02B
Previous year: $1.23B
+145.8%
Free Cash Flow
-$661M
Previous year: $616M
-207.3%
Total Assets
$28.9B
Previous year: $28.3B
+2.2%

Tenet Healthcare Revenue

Tenet Healthcare EPS

Tenet Healthcare Revenue by Segment

Forward Guidance

Tenet Healthcare expects stable revenue growth in 2025, driven by strong ambulatory and same-hospital performance. Cost optimizations and favorable payer mix will support margin expansion.

Positive Outlook

  • Expected 2025 revenue between $20.6B and $21.0B
  • Adjusted EBITDA projected between $3.975B and $4.175B
  • Ambulatory segment revenue expected to grow by 3-6%
  • Hospital admissions projected to rise by 2-3%
  • Continued strong free cash flow outlook for 2025

Challenges Ahead

  • Revenue impact from divested hospitals
  • Potential pressures from rising labor costs
  • Margin pressures from increased outpatient services
  • Higher interest expenses affecting net income
  • Uncertainty around Medicaid reimbursement programs

Revenue & Expenses

Visualization of income flow from segment revenue to net income