DALLAS - Tenet Healthcare Corporation (NYSE: NYSE:THC) has reported a robust first quarter for 2024, with adjusted diluted earnings per share (EPS) from continuing operations reaching $3.22, significantly surpassing the analyst consensus of $1.45.
The company's net operating revenues climbed to $5.37 billion, also exceeding expectations against the consensus estimate of $5.15 billion. THC shares were up 9.9% in premarket trading Tuesday.
The company's net income from continuing operations available to common shareholders for the first quarter of 2024 was a staggering $2.151 billion, or $21.38 per diluted share, which included an after-tax gain of $1.856 billion from hospital divestitures. This represents a substantial increase compared to the first quarter of 2023, which saw a net income of $143 million, or $1.32 per diluted share. The adjusted EBITDA for the first quarter of 2024 was $1.024 billion, a 23.1% increase from the $832 million reported in the same quarter of the previous year.
The company's Ambulatory Care segment also demonstrated strong performance, with adjusted EBITDA reaching $394 million, marking a 15.9% increase over the first quarter of 2023. This growth was attributed to higher net revenue per case, acquisitions, and the opening of new facilities.
Looking ahead, Tenet has raised its FY 2024 adjusted EBITDA outlook to a range of $3.5 billion to $3.7 billion, reflecting a $215 million increase. This optimistic forecast aligns with the company's strategic decisions and operational excellence, as highlighted by Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet.
"We have had an outstanding start to the year highlighted by strong growth in revenues, admissions, and profitability," said Sutaria. "Our operational excellence and focus on continuous improvement helped enable our momentum as we transform our company through strategic portfolio decisions, disciplined capital allocation, and debt reduction."
The company's balance sheet and cash flows also showed positive trends, with cash flows from operating activities for the first quarter of 2024 amounting to $586 million, compared to $449 million in the same period last year. Free cash flow was reported at $346 million for the first quarter of 2024, a notable increase from $214 million in the first quarter of 2023.
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