On July 24, 2024, Tenet Healthcare Corp (THC, Financial) released its 8-K filing for the second quarter of 2024, showcasing a robust financial performance that surpassed analyst expectations. Tenet Healthcare is a Dallas-based healthcare services organization operating approximately 60 hospitals and over 450 ambulatory surgery centers and other outpatient facilities across the U.S., primarily in the South. Through its Conifer segment, Tenet also provides revenue cycle management solutions.
Performance Highlights
Tenet Healthcare Corp (THC, Financial) reported net income available to common shareholders of $259 million, or $2.64 per diluted share, significantly higher than the $123 million, or $1.15 per diluted share, reported in the same quarter last year. Adjusted diluted earnings per share stood at $2.31, surpassing the analyst estimate of $1.83. Consolidated Adjusted EBITDA reached $945 million, marking a 12.1% increase over the second quarter of 2023.
Financial Achievements
Tenet Healthcare Corp (THC, Financial) achieved net operating revenues of $5,103 million, slightly above the estimated $5,003.34 million. The company's strong performance was driven by volume and revenue growth, sustained fundamentally strong operating performance, and favorable payer mix.
Our results through the second quarter, which have significantly exceeded our expectations, have been driven by volume and revenue growth as well as sustained fundamentally strong operating performance," said Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet.
Segment Performance
The Ambulatory Care segment reported Adjusted EBITDA of $447 million, a 20.8% increase over the previous year, driven by strong net revenue per case growth, acquisitions, and increased service lines. The Hospital Operations and Services segment saw a decline in net operating revenues by 4.3% due to hospital divestitures but reported a 5.7% increase in same-hospital net patient service revenue per adjusted admission.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Operating Revenues | $5,103 million | $5,082 million |
| Net Income Available to Common Shareholders | $259 million | $123 million |
| Adjusted EBITDA | $945 million | $843 million |
| Adjusted Diluted EPS | $2.31 | $1.44 |
Balance Sheet and Cash Flow
Cash flows provided by operating activities for the first half of 2024 were $1.333 billion, compared to $1.047 billion in the same period last year. Free cash flow for the six months ended June 30, 2024, was $948 million, up from $680 million in the previous year. The company also repurchased 4,801,461 shares of common stock for $548 million, completing its previous $1 billion share repurchase program. The Board of Directors has authorized a new $1.5 billion share repurchase program.
Outlook
Tenet Healthcare Corp (THC, Financial) has raised its FY 2024 Adjusted EBITDA outlook to a range of $3.825 billion to $3.975 billion, a $300 million increase. The FY 2024 Free Cash Flow outlook has also been increased to a range of $1.100 billion to $1.350 billion, a $150 million increase.
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Explore the complete 8-K earnings release (here) from Tenet Healthcare Corp for further details.
