Hospital Chain Operator Tenet Healthcare Reports Strong First Quarter Results and Raises Fiscal Year Guidance

Tenet Healthcare Corporation (NYSE: THC) saw its stock soar on Tuesday after reporting strong first-quarter sales, exceeding expectations and showcasing impressive growth in revenues, admissions, and profitability.

The hospital chain operator reported sales of $5.37 billion, up 7% year over year, beating the consensus of $5.15 billion. This growth was attributed to strong same-hospital admission growth, favorable payer mix, and improved contract labor costs, among other factors.

Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet Healthcare, expressed excitement about the company’s outstanding start to the year and highlighted the positive trends in revenue and profitability.

The company also raised its fiscal year 2024 revenue guidance to $20 billion—$20.4 billion, up from prior guidance of $19.9 billion—$20.3 billion. Additionally, Tenet Healthcare expects adjusted EPS of $8.37-$9.41 and adjusted EBITDA of $3.5 billion to $3.7 billion for the fiscal year.

Investors reacted positively to the news, with THC shares surging nearly 10% to $109.08 at the last check on Tuesday.

Overall, the strong performance and optimistic outlook for Tenet Healthcare have fueled investor confidence and contributed to the stock’s impressive gains.