NYSE$THC

Tenet Healthcare Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Tenet Healthcare's performance was impacted by COVID-19 and supported by federal stimulus.

Tenet Healthcare reported net income from continuing operations available to common shareholders of $88 million, or $0.83 per diluted share, in 2Q20. The company's results were significantly impacted by the COVID-19 pandemic, but were partially offset by cost-reduction initiatives and grant income from stimulus relief funds. The financial support of the CARES Act provided an important bridge to minimize the financial crisis the pandemic created, allowing uninterrupted care for our patients and communities.

  • Net income from continuing operations available to common shareholders of $88 million, or $0.83 per diluted share, in 2Q20 versus net income from continuing operations of $24 million, or $0.23 per diluted share, in 2Q19
  • Consolidated Adjusted EBITDA of $732 million in 2Q20 versus $669 million in 2Q19
  • Federal stimulus support received was critical in addressing pandemic challenges, allowing uninterrupted response across our care facilities
  • Experienced pronounced volatility in monthly volumes associated with COVID-19 during 2Q20, including restrictions on elective procedures, with April lows followed by substantial improvement in May and June

Headline financials

Total Revenue

$3.65B

Previous: $4.56B-20.0%
EPS (adj)

$0.84

Previous: $0.25+236.0%
Capital Expenditures

-$106M

Previous: -$336M+68.5%
Free Cash Flow

$63M

Previous: -$224M+128.1%
Net Income

$169M

Previous: $112M+50.9%
Operating Income

$471M

Previous: $388M+21.4%
Gross Profit

$3.04B

Previous: $4.56B-33.4%
Cash & Equivalents

$3.51B

Previous: $249M+1311.2%
Total Assets

$26.3B

Previous: $23.2B+13.1%
Stock-Based Comp

$14M

Previous: $12M+16.7%

Revenue & EPS history

Tenet Healthcare · Revenue · Quarterly

$3.65B

Q2 2020-20%vs Q2 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Tenet Healthcare · $3.46B total across 2 segments · Q2 2020

  • Hospital Operations
    $3.09B
  • Ambulatory Care
    $368M

Forward guidance

On April 2, 2020, Tenet withdrew its 2020 Financial Outlook due to the impact of the COVID-19 pandemic upon the Company's ability to forecast its results with precision in the near term.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-1.0%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+3.0%

Avg return

30 days after

49%

33 / 68 earnings

Positive

+13.3%

Q3 2024

Best reaction

-31.1%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.7%+3.8%-2.8%
Q4 2025-0.7%+6.4%+29.3%
Q3 2025-5.3%-4.5%+0.6%
Q2 2025+0.3%+3.6%+12.2%
Q1 2025+0.2%-9.6%+7.4%
Q4 2024-9.1%-4.0%-11.6%
Q3 2024+13.3%+11.9%+1.8%
Q2 2024+8.0%+10.2%+18.6%
Q1 2024-0.7%-2.8%+6.8%
Q4 2023-0.0%+6.9%+14.0%
Q3 2023+1.1%+3.4%+26.8%
Q2 2023+3.3%+0.2%+5.4%
Q1 2023+1.5%+5.6%+27.3%
Q4 2022-3.2%+13.8%-3.3%
Q3 2022-31.1%-24.0%-17.2%
Q2 2022+7.8%+7.9%+7.9%
Q1 2022-0.3%-8.0%-16.6%
Q4 2021-5.3%+12.1%+23.0%
Q3 2021+9.3%+6.7%+20.2%
Q2 2021-0.7%+1.6%+3.0%
Q1 2021-3.7%-4.5%+11.5%
Q4 2020-5.1%-4.7%+6.3%
Q3 2020+0.9%+3.4%+12.9%
Q2 2020+0.6%+10.1%+10.6%
Q1 2020-8.6%+19.3%+34.4%
Q4 2019-14.5%-23.2%-47.4%
Q3 2019+8.6%+14.8%+30.4%
Q2 2019-3.8%-5.0%-7.9%
Q1 2019+3.2%+8.1%-24.1%
Q4 2018+11.5%+21.6%+16.5%
Q3 2018-9.3%-3.2%-8.7%
Q2 2018-15.6%-15.9%-17.4%
Q1 2018-4.4%+0.7%-1.3%
Q4 2017+7.7%+13.7%+23.6%
Q3 2017+7.7%+9.2%+4.6%
Q2 2017-14.8%-16.2%+2.3%
Q1 2017-4.1%-3.6%-13.8%
Q4 2016-12.2%-4.5%-18.5%
Q3 2016-5.6%-12.3%-24.8%
Q2 2016-9.9%-10.2%-21.9%
Q1 2016-0.1%
Q4 2015+5.4%
Q3 2015+9.2%
Q2 2015+2.1%
Q1 2015-3.2%
Q4 2014+1.0%
Q3 2014-5.3%
Q2 2014+4.8%
Q1 2014+1.7%
Q4 2013-6.3%
Q3 2013-6.8%
Q2 2013-7.0%
Q1 2013+0.9%
Q4 2012+3.5%
Q3 2012+5.4%
Q2 2012+11.8%
Q1 2012+1.1%
Q4 2011+0.0%
Q3 2011+4.9%
Q2 2011-4.6%
Q1 2010-6.3%
Q1 2011+1.6%
Q4 2008+3.0%
Q3 2009+0.0%
Q3 2010+0.0%
Q2 2009+0.7%
Q2 2010+0.7%
Q4 2009+0.7%

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