THC Earnings Prediction
The chart below shows how THC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, THC sees a -3.04% change in stock price 10 days leading up to the earnings, and a +0.36% change 10 days following the report. On the earnings day itself, the stock moves by +3.37%. This data can give you a slight idea of what to expect for the next quarter's release.
THC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.07B
-5.71%
-0.98%
Gross Margin
77.86%
-1.04%
-1.09%
Operating Margin
16.56%
8.73%
10.84%
Net Margin
11.28%
33.02%
-15.19%
EPS
3.30
41.03%
-32.52%
No Data Available
THC Earnings Analysis
Tenet Healthcare Corp Corporation (THC.N) Earnings Conference Call
Positive
Revenue and EBITDA Growth: 2024 net operating revenues reached $20.7 billion, with consolidated adjusted EBITDA of $4 billion, reflecting a 13% growth over 2023 and an improved adjusted EBITDA margin of 19.3%.
Adjusted EBITDA Growth: USPI generated $1.81 billion in adjusted EBITDA for 2024, marking a 17% increase from the previous year, with adjusted EBITDA margins at 40%.
Same Facility Revenue Growth: Same facility revenues grew by 7.8% in 2024, significantly exceeding long-term growth goals, driven by a 19% increase in total joint replacements in ASCs.
Hospital Segment Performance: Despite divesting 14 hospitals, the hospital segment achieved $2.185 billion in adjusted EBITDA for 2024, a 9% growth over the prior year, with same store hospital admissions up 4.7%.
Share Repurchase Commitment: Over the past two years, Tennant Healthcare has repurchased approximately 14% of its outstanding shares for $1.12 billion, demonstrating a commitment to returning capital to shareholders.
Negative
EBITDA Projection Decline: Adjusted EBITDA for 2025 is projected to be between $3,975,000,000 and $4,175,000,000, which reflects a decrease from the previous year's adjusted EBITDA of $3,995,000,000, indicating a potential slowdown in growth.
Divested Facilities Impact: The company reported $114,000,000 of adjusted EBITDA from divested facilities in 2024, which will not recur in 2025, suggesting a negative impact on future earnings.
Revenue Growth Projection Decline: The guidance for same facility revenue growth in USPI is projected at 3% to 6%, which is a significant decline from the 8.6% increase reported in the previous year, indicating a potential slowdown in revenue growth.
Projected Free Cash Flow Decline: The anticipated free cash flow after distributions to non-controlling interests for 2025 is projected to be between $1,050,000,000 and $1,250,000,000, which is lower than the previous year's free cash flow of nearly $2,000,000,000, reflecting a decrease in cash generation capacity.
Regulatory Change Uncertainty: The company acknowledged potential regulatory changes that could impact operations, indicating uncertainty in the operating environment that may affect future performance.
THC FAQs
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THC Earning Call Sentiment
Earnings call transcript: Tenet Healthcare misses Q4 2024 revenue forecast
THC.N
-0.96%Positive
The earnings call summary indicates strong financial performance with record revenue and EBITDA growth, improved margins, and substantial free cash flow. The raised guidance for 2024 and active share repurchase program further enhance investor confidence. While there are some concerns about political risks and specific guidance clarity, the overall sentiment is positive, supported by robust demand expectations and strategic flexibility in leveraging M&A opportunities. These factors suggest a positive stock price movement over the next two weeks.
