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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%.
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 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