Tenet Healthcare Upgrades Guidance as Q3 Earnings Surge

Tenet Healthcare Corporation anticipates higher fiscal 2024 guidance, projecting adjusted EBITDA and EPS increases. A substantial rise in quarterly earnings and revenue signals strong performance, influencing positive stock price movement.

Date: 29-10-2024

AI Rating: 8

According to the report, Tenet Healthcare Corporation (THC) has revised its fiscal 2024 financial outlook positively. The adjusted EBITDA is now estimated to range from $3.9 billion to $4.0 billion, which reflects an increase of $50 million from previous guidance.

The adjusted earnings per share (EPS) forecast is also noteworthy, set between $11.12 and $11.73. This marks a significant rise from the earlier projected range of $10.41 to $11.12. Increased EPS typically indicates stronger profitability, which can positively affect stock sentiment.

In terms of revenue growth, Net operating revenues for fiscal 2024 are projected at $20.6 billion to $20.8 billion, maintaining a stable outlook given that the previous range was $20.60 billion to $21.00 billion.

Focusing specifically on Q3 results, Tenet reported earnings of $472 million, or $4.89 per share, substantially higher than last year's $101 million, or $0.94 per share. The adjusted EPS increased from $1.44 to $2.93, demonstrating robust growth and surpassing the anticipated figures.

Additionally, adjusted EBITDA for Q3 reached $978 million, which is a 15% increase year-over-year, and exceeded expectations. Revenue for this quarter increased slightly to $5.12 billion from $5.07 billion last year, reflecting a positive trajectory.

With a current rise of 7% in pre-market trading, it can be inferred that investors are responding favorably to these enhanced projections and solid Q3 performance. Given these indicators of strong growth and profitability, Tenet's prospects appear markedly positive.

Stocks: THC