NYSE$THC

Tenet Healthcare Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Tenet Healthcare's Q3 2023 performance was driven by sustained revenue growth and effective cost management.

Tenet Healthcare reported a strong Q3 2023, with net income of $101 million and adjusted EPS of $1.44. The company benefited from same-facility revenue growth and cost controls across its ambulatory care and hospital segments. The FY 2023 Adjusted EBITDA outlook was raised.

  • Net income from continuing operations available to common shareholders was $101 million, or $0.94 per diluted share.
  • Adjusted diluted earnings per share from continuing operations was $1.44.
  • Consolidated Adjusted EBITDA was $854 million, including $3 million of grant income.
  • Ambulatory Care Adjusted EBITDA increased 16.0% over third quarter 2022, reaching $370 million.

Headline financials

Total Revenue

$5.07B

Previous: $4.8B+5.5%
EPS (adj)

$0.99

Previous: $1.22-18.5%
Capital Expenditures

-$176M

Previous: -$165M-6.7%
Free Cash Flow

$90M

Previous: $103M-12.6%
Net Income

$266M

Previous: $268M-0.7%
Operating Income

$568M

Previous: $596M-4.7%
Gross Profit

$4.19B

Previous: $3.98B+5.1%
Cash & Equivalents

$1.05B

Previous: $1.21B-12.7%
Total Assets

$27.6B

Previous: $27.1B+1.9%
Stock-Based Comp

$15M

Previous: $13M+15.4%

Revenue & EPS history

Tenet Healthcare · Revenue · Quarterly

$5.07B

Q3 2023+5.5%vs Q3 2022
Beat estimate in 9 of 13 quarters(69%)
ActualEstimate

Revenue by segment

Tenet Healthcare · $4.86B total across 2 segments · Q3 2023

  • Hospital Operations
    $3.92B+3.7%
  • Ambulatory Care
    $941M+16.7%

Forward guidance

Tenet provided its outlook for full year 2023 and fourth quarter 2023.

Tailwinds

  • Net operating revenues are expected to be in the range of $20.3 billion to $20.5 billion for FY 2023.
  • Adjusted EBITDA is projected to be between $3.365 billion and $3.465 billion for FY 2023.
  • Diluted income per common share from continuing operations is expected to be $4.25 to $5.06 for FY 2023.
  • Adjusted diluted earnings per share from continuing operations are anticipated to be $5.43 to $6.05 for FY 2023.
  • Free cash flow is projected to be $1.125 billion to $1.350 billion for FY 2023.

Headwinds

  • Net income from continuing operations available to Tenet common stockholders is projected to be $456 million to $541 million for FY 2023.
  • Equity in earnings of unconsolidated affiliates is expected to be $205 million to $225 million for FY 2023.
  • Depreciation and amortization is projected to be $870 million to $890 million for FY 2023.
  • Interest expense is expected to be $895 million to $905 million for FY 2023.
  • Income tax expense is projected to be $320 million to $335 million for FY 2023.

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 2023

Historical avgQ3 2023

-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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