Tenet Healthcare has reported strong financial performance in the third quarter of 2024, with significant year-on-year growth.
The company's net operating revenues increased by 15 percent compared to the same period last year, reaching $5.1 billion. Adjusted EBITDA also improved, reaching $978 million with a margin of 19.1 percent.
Tenet has raised its full-year adjusted EBITDA forecast to a range of $3.9 billion to $4 billion, despite a slight decline in revenue expectations due to the divestiture of hospitals in Alabama.
The USPI segment of the company saw a 19 percent increase in adjusted EBITDA, driven by the successful performance of orthopedic procedures and the opening of new facilities.
The Hospital segment also contributed positively, with an 11 percent increase in adjusted EBITDA supported by a 5.2 percent rise in like-for-like admissions.
Tenet Healthcare is actively focused on creating shareholder value and growth through capital deployment, share buybacks, and exploring mergers and acquisitions.
The company plans to deliver its 2025 forecast in February 2025, with expectations of continued growth and operational efficiencies.
Tenet Healthcare's strong financial performance has solidified its position as a leading player in the healthcare provider sector, with a market capitalization of $15.35 billion. The stock has seen a remarkable total price return of 205.65 percent over the past year, indicating strong market confidence.
Despite this growth, Tenet's valuation remains attractive, with an adjusted P/E ratio of 9.37, suggesting that the company may still be undervalued relative to its earnings potential. Tenet Healthcare's strategic focus on share buybacks and capital deployment demonstrates its commitment to enhancing shareholder value.
Overall, Tenet Healthcare is well-positioned for continued growth and success in the healthcare market.