NYSE$THC

Tenet Healthcare Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Tenet Healthcare reported fourth quarter 2020 results, announced a plan to retire $478 million of debt, and provided 2021 financial guidance.

Tenet Healthcare Corporation reported a net income from continuing operations available to common shareholders of $414 million in Q4 2020, compared to a net loss of $3 million in Q4 2019. Adjusted EBITDA for Q4 2020 was $832 million excluding grant income, or $1.278 billion including grant income. The company plans to retire $478 million of debt and anticipates annual interest savings of approximately $33 million.

  • Net income from continuing operations available to common shareholders in 4Q20 was $414 million, compared to a net loss of $3 million in 4Q19.
  • Consolidated Adjusted EBITDA in 4Q20 was $832 million excluding $446 million of COVID stimulus grant income, or $1.278 billion including the grant income, versus $799 million in 4Q19.
  • Diluted earnings per share from continuing operations available to common shareholders in 4Q20 was $3.86 compared to a loss per share of $0.03 in 4Q19; Adjusted diluted earnings per share from continuing operations was $4.72 in 4Q20 compared to $0.95 in 4Q19.
  • The company plans to retire $478 million of 7% senior unsecured notes due 2025, expecting annual interest savings of approximately $33 million.

Headline financials

Total Revenue

$4.92B

Previous: $4.81B+2.3%
EPS (adj)

$3.94

Previous: -$0.03+13233.3%
Capital Expenditures

$166M

Previous: $178M-6.7%
Free Cash Flow

$280M

Previous: $342M-18.1%
Net Income

$546M

Previous: $129M+323.3%
Operating Income

$920M

Previous: $460M+100.0%
Gross Profit

$4.09B

Previous: $4B+2.2%
Cash & Equivalents

$2.45B

Previous: $262M+833.6%
Total Assets

$27.1B

Previous: $23.4B+16.1%
Stock-Based Comp

$6M

Previous: $8M-25.0%

Revenue & EPS history

Tenet Healthcare · Revenue · Quarterly

$4.92B

Q4 2020+2.3%vs Q4 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Tenet Healthcare · $4.71B total across 2 segments · Q4 2020

  • Hospital Operations
    $4.07B+2.1%
  • Ambulatory Care
    $649M+2.7%

Forward guidance

Tenet’s Outlook for FY 2021 and 1Q21 anticipates continuing recovery from the pandemic and growth from operational improvements.

Tailwinds

  • Net operating revenues are projected to be between $19.2 billion and $19.6 billion.
  • Adjusted EBITDA is expected to be in the range of $2.9 billion to $3.1 billion.
  • Diluted income per common share from continuing operations is estimated to be between $2.09 and $3.81.
  • Adjusted net income from continuing operations is projected to be between $380 million and $520 million.
  • Adjusted free cash flow is anticipated to be between $525 million and $725 million.

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 Q4 2020

Historical avgQ4 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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