Tenet Healthcare (THC) Tops Q4 EPS by 1c, Revenues Beat; Offers FY20 Revenue Guidance Above Consensus, Provides FY20 EPS Outlook
Tenet Healthcare (NYSE: THC) reported Q4 EPS of $0.99, $0.01 better than the analyst estimate of $0.98. Revenue for the quarter came in at $4.81 billion versus the consensus estimate of $4.76 billion.
- Net income from continuing operations attributable to common shareholders of $2 million, or $0.02 per diluted share, in 4Q19 versus a net loss from continuing operations of $5 million, or $0.05 per diluted share in 4Q18
- Several 4Q19 key financial metrics up significantly year over year:
- Consolidated Adjusted EBITDA up 18 percent (above the Outlook mid-point)
- Consolidated Adjusted diluted EPS up 94 percent (above the Outlook mid-point)
- Hospital segment Adjusted EBITDA up 16 percent
- Ambulatory segment EBITDA less NCI up 26 percent
- Conifer segment Adjusted EBITDA up 8 percent; related margins up 490 basis points
- Strong growth in patient volumes continued in 4Q19:
- Hospital segment same-hospital admissions and adjusted admissions grew 2.6 percent and 1.9 percent, respectively
- Ambulatory segment system-wide same-facility surgical cases grew 3.4 percent
- FY 2019 net cash from operating activities rose 18 percent; Adjusted free cash flow rose 27 percent (both above the Outlook mid-point)
- FY 2020 Outlook anticipates continued growth from operational improvements:
- Net income from continuing operations attributable to Tenet Common shareholders, $1.23 to $2.31 per diluted share
- Adjusted EBITDA of $2.785 billion to $2.885 billion
- Adjusted diluted earnings per share of $2.69 to $3.35
“Our financial results for 2019 support the sustainable changes we have made across each of our operating segments,” said Ronald A. Rittenmeyer, Executive Chairman and Chief Executive Officer. “We closed the year with a very strong fourth quarter and believe our focus on our patients, our physicians and all stakeholders — supported by underlying enhancements to technology, a renewed dedication to customer service and a keen eye on administrative expenses — are driving our growth and positioning us well for 2020 and future years.”
GUIDANCE:
Tenet Healthcare sees Q1 2020 EPS of $0.42-$0.75, versus the consensus of $0.51. Tenet Healthcare sees Q1 2020 revenue of $4.6-4.8 billion, versus the consensus of $4.68 billion.
Tenet Healthcare sees FY2020 EPS of $2.69-$3.35, versus the consensus of $2.94. Tenet Healthcare sees FY2020 revenue of $19.1-19.5 billion, versus the consensus of $18.99 billion.
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