NYSE$THC

Tenet Healthcare Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Tenet Healthcare's financial performance in Q3 2021 demonstrated significant improvement compared to the previous year. The company reported a substantial increase in net income and adjusted EBITDA, driven by strong performance across its operating segments.

Tenet Healthcare reported a net income of $448 million, or $4.12 per diluted share, compared to a net loss of $197 million, or $1.87 per share, in Q3 2020. Adjusted EBITDA reached $855 million, up from $551 million in the prior year. The company raised its full-year 2021 financial guidance, reflecting confidence in continued growth and strong cash flow generation.

  • Net income from continuing operations available to common shareholders was $448 million in Q3 2021, a significant increase from the $197 million net loss in Q3 2020.
  • Consolidated Adjusted EBITDA increased to $855 million in Q3 2021, compared to $551 million in Q3 2020.
  • Diluted earnings per share from continuing operations was $4.12 in Q3 2021, compared to a loss per share of $1.87 in Q3 2020; Adjusted diluted earnings per share from continuing operations of $1.99 in Q3 2021 compared to $0.64 in Q3 2020
  • Tenet raised its full-year 2021 outlook for net income, Adjusted EBITDA, and adjusted diluted earnings per share, indicating strong financial performance and positive trajectory.

Headline financials

Total Revenue

$4.89B

Previous: $4.56B+7.4%
EPS (adj)

$4.20

Previous: -$1.87+324.6%
Surgical Cases Growth

6.8%

No prior period
Capital Expenditures

-$111M

Previous: -$86M-29.1%
Free Cash Flow

$467M

Previous: -$192M+343.2%
Net Income

$578M

Previous: -$106M+645.3%
Operating Income

$1.01B

Previous: $271M+274.2%
Gross Profit

$4.07B

Previous: $3.77B+7.8%
Cash & Equivalents

$2.29B

Previous: $3.3B-30.5%
Total Assets

$25.9B

Previous: $26.2B-1.0%
Stock-Based Comp

$13M

Previous: $11M+18.2%

Revenue & EPS history

Tenet Healthcare · Revenue · Quarterly

$4.89B

Q3 2021+7.4%vs Q3 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Tenet Healthcare · $4.7B total across 2 segments · Q3 2021

  • Hospital Operations
    $4.03B+6.0%
  • Ambulatory Care
    $666M+17.9%

Forward guidance

Tenet Healthcare provided its outlook for FY 2021, projecting net operating revenues between $19.5 billion and $19.8 billion, and Adjusted EBITDA between $3.275 billion and $3.325 billion.

Tailwinds

  • Net operating revenues are projected to be between $19.5 billion and $19.8 billion.
  • Adjusted EBITDA is expected to be in the range of $3.275 billion to $3.325 billion.
  • Diluted income per common share from continuing operations is forecasted to be between $7.09 and $7.50.
  • Adjusted diluted earnings per share from continuing operations are anticipated to be between $6.15 and $6.38.
  • Adjusted free cash flow is projected to be between $650 million and $850 million.

Headwinds

  • Interest expense is expected to be between $915 million and $925 million.
  • Capital expenditures are projected to be between $675 million and $725 million.
  • NCI cash distributions are estimated to be between $450 million and $470 million.
  • Depreciation and amortization expenses are expected to be between $860 million and $870 million.
  • Effective tax rate is estimated to be around 18%.

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 Q3 2021

Historical avgQ3 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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