Shares of Tenet Healthcare (NYSE: THC) surged almost 25% to close at $162 a share on positive earnings news and growth driven by strong performance across Tenet’s key hospital and ambulatory segments.
For the third quarter of 2024, earnings leaped to $472 million, or $4.89 per diluted share, versus $101 million, or $0.94 per diluted share, in third quarter 2023.
For the third quarter of 2024, net operating revenued increased by 1.1%, reaching $5.122 billion, up from $5.066 billion in the previous year.
The company also raised its 2023 outlook, now expecting full-year net operating revenues between $20.3 and $20.5 billion, with adjusted EBITDA of up to $3.47 billion.
“Our businesses continue to produce strong results and generate robust free cash flow with same store revenue growth and profitability well above our expectations due to the focused execution of our strategy and disciplined operations,” said Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet Healthcare. “We have furthered our portfolio transformation and are well-positioned to deliver enhanced value to our patients, physician partners, and shareholders.”
Tenet Healthcare operates 61 hospitals across nine U.S. states, including Texas, California, Arizona, Michigan, Alabama, and Florida. These facilities focus on various specialized healthcare services tailored to their respective communities, including acute care hospitals and outpatient centers, such as ambulatory surgery centers and imaging locations. In addition to hospitals, Tenet has an extensive network of approximately 550 outpatient facilities nationwide.
Tenet Healthcare also holds a majority stake in United Surgical Partners International (USPI), making it one of the largest providers of ambulatory surgery centers in the country.
Tenet Healthcare stock reached its all-time high on October 3, 2002 when it briefly traded at $210 a share. It traded as low as $25 a share as recent as 2020.
