NYSE$THC

Tenet Healthcare Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Tenet Healthcare's Q2 2021 results reflected long-term strategy and transformation progress.

Tenet Healthcare reported a strong second quarter in 2021, with net income from continuing operations available to common shareholders of $120 million, or $1.11 per diluted share, compared to $88 million, or $0.83 per diluted share, in Q2 2020. Adjusted EBITDA was $834 million, and adjusted diluted earnings per share from continuing operations were $1.59. The company raised its full-year 2021 financial guidance, citing continued growth, operational improvements, and grant income.

  • Net income from continuing operations available to common shareholders in Q2 2021 was $120 million, compared to $88 million in Q2 2020.
  • Consolidated Adjusted EBITDA in Q2 2021 was $834 million versus $732 million in Q2 2020.
  • Diluted earnings per share from continuing operations available to common shareholders in Q2 2021 was $1.11 compared to $0.83 in Q2 2020; Adjusted diluted earnings per share from continuing operations of $1.59 in Q2 2021 compared to $1.26 in Q2 2020.
  • The FY 2021 Outlook was increased due to continued growth and operational improvements as well as grant income.

Headline financials

Total Revenue

$4.95B

Previous: $3.65B+35.8%
EPS (adj)

$1.12

Previous: $0.84+33.3%
Surgical Cases Growth

68.2%

No prior period
Capital Expenditures

-$122M

Previous: -$106M-15.1%
Free Cash Flow

$135M

Previous: $63M+114.3%
Net Income

$257M

Previous: $169M+52.1%
Operating Income

$586M

Previous: $471M+24.4%
Gross Profit

$4.1B

Previous: $3.04B+34.8%
Cash & Equivalents

$2.19B

Previous: $3.51B-37.6%
Total Assets

$26.6B

Previous: $26.3B+1.2%
Stock-Based Comp

$16M

Previous: $14M+14.3%

Revenue & EPS history

Tenet Healthcare · Revenue · Quarterly

$4.95B

Q2 2021+35.8%vs Q2 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Tenet Healthcare · $4.76B total across 2 segments · Q2 2021

  • Hospital Operations
    $4.1B+32.6%
  • Ambulatory Care
    $664M+80.4%

Forward guidance

Tenet Healthcare raised its full-year 2021 outlook, expecting net operating revenues between $19.250 billion and $19.650 billion, Adjusted EBITDA between $3.150 billion and $3.250 billion, and Adjusted diluted earnings per share between $5.23 and $5.73.

Tailwinds

  • Net operating revenues are expected to be between $19,250 million and $19,650 million.
  • Adjusted EBITDA is projected to be between $3,150 million and $3,250 million.
  • Diluted income per common share from continuing operations is anticipated to be between $6.25 and $7.17.
  • Adjusted net income from continuing operations is expected to be between $570 million and $625 million.
  • Adjusted diluted earnings per share from continuing operations are projected to be between $5.23 and $5.73.

Headwinds

  • Interest expense is expected to be between $935 million and $945 million.
  • Depreciation and amortization are projected to be between $850 million and $870 million.
  • Capital expenditures are estimated to be between $700 million and $750 million.
  • NCI cash distributions are expected to be between $460 million and $480 million.
  • Effective tax rate is projected to be ~17%.

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 2021

Historical avgQ2 2021

-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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