- Tenet Healthcare has raised its full-year adjusted EBITDA forecast to a range of $4.40 billion to $4.54 billion, up from the previous range of $3.98 billion to $4.18 billion, exceeding the prior estimate of $4.13 billion.
- The company projects net operating revenue between $20.95 billion and $21.25 billion, an increase from the earlier range of $20.60 billion to $21.00 billion, surpassing the previous estimate of $20.89 billion.
- Capital expenditure for the year is expected to be between $725 million and $825 million, up from the previous range of $700 million to $800 million, with the prior estimate at $754.1 million.
- Adjusted EPS forecast is raised to a range of $15.55 to $16.21 from the previous range of $11.99 to $13.12, exceeding the prior estimate of $12.83.
- In the second quarter, Tenet’s adjusted EBITDA was $1.12 billion, reflecting a 19% year-over-year increase, surpassing the estimate of $978.3 million.
- Ambulatory Care net operating revenue reached $1.27 billion, marking an 11% year-over-year growth, exceeding the estimate of $1.24 billion.
- Hospital Operations and Services net operating revenue was reported at $4.00 billion, ahead of the estimate of $3.9 billion.
- The company’s total net operating revenue for the second quarter was $5.27 billion, exceeding the estimate of $5.16 billion.
- Tenet reported an adjusted EPS of $4.02 for the second quarter, significantly surpassing the estimate of $2.86.
- The board has authorized a $1.5 billion increase to the share buyback program.
- The company raised its financial outlook for 2025, expecting a midpoint increase of $395 million in the adjusted EBITDA outlook.
- Analysts’ ratings on Tenet include 20 buy recommendations, 5 hold recommendations, and 0 sell recommendations.
Tenet Healthcare on Smartkarma
On Smartkarma, analyst coverage of Tenet Healthcare by Baptista Research has been positive. In their report titled “Tenet Healthcare’s $250M Acquisition Blitz Is Fueling a High-Acuity Revolution – What Lies Ahead?”, the analysts highlight the company’s strong financial results for the first quarter of 2025. Tenet Healthcare reported significant year-over-year growth in key financial metrics, with net operating revenues reaching $5.2 billion and a consolidated adjusted EBITDA of $1.163 billion, showing a 14% increase from the previous year. Improved operational efficiency and cost management are reflected in the EBITDA margin, which increased to 22.3%, a substantial 320 basis point rise.
Additionally, in their report “Tenet Healthcare: USPI Resiliency & Growth Driving Our ‘Buy’ Rating!”, Baptista Research continues to be bullish on Tenet Healthcare. The analysts commend the company’s performance for the fourth quarter of 2024 and the full year, noting significant operational achievements and strategic transactions that enhance its financial posture. With net operating revenues of $20.7 billion and a consolidated adjusted EBITDA of $4 billion for the year, reflecting a 13% increase over the previous year and an improved EBITDA margin of 19.3%, Tenet Healthcare‘s performance is driven by robust same-store revenue growth across segments and disciplined cost management.
A look at Tenet Healthcare Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Tenet Healthcare is positioned for promising long-term growth with a strong momentum score of 5. This indicates that the company is showing significant positive performance trends that are likely to continue in the future. Additionally, Tenet Healthcare scores high in the growth category with a score of 4, suggesting that the company has solid potential for expansion and development in the coming years.
While Tenet Healthcare shows strength in growth and momentum, it is important to note that its dividend score is relatively low at 1. This indicates that the company may not be prioritizing dividend payouts to shareholders. However, overall, with a combined score of 3 for value and resilience, Tenet Healthcare appears to have a stable foundation and potential for long-term success in the healthcare industry.
Summary of Tenet Healthcare: Tenet Healthcare Corporation owns and operates various healthcare facilities in the U.S., including general hospitals, specialty hospitals, and medical office buildings. Their services cater to communities with a range of health care needs, showcasing a diverse portfolio of healthcare businesses.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
