Fannie Mae, Freddie Mac shares tumble after conservatorship comments
DALLAS - On Tuesday, Tenet Healthcare Corporation (NYSE:THC) reported second quarter adjusted earnings that significantly exceeded analyst expectations.
The company’s shares were up 2.5% in pre-market trading following the announcement, as the healthcare provider raised its full-year outlook.
The company posted adjusted earnings per share of $4.02 for the second quarter, substantially beating the analyst consensus of $2.88. Revenue came in at $5.27 billion, surpassing estimates of $5.16 billion and representing a 3.2% increase YoY. Consolidated Adjusted EBITDA rose 18.6% to $1.12 billion, with an Adjusted EBITDA margin of 21.3%.
"Our strong second quarter results extend our track record of attractive same store revenue growth, operational performance driven by fundamentals, and robust free cash flow generation," said Saum Sutaria, M.D., Chairman and Chief Executive Officer of Tenet.
The company’s Hospital segment was particularly strong, with Adjusted EBITDA jumping 25% to $623 million compared to $498 million in the same quarter last year. This improvement reflected strong same-hospital revenue growth, favorable payer mix, and disciplined expense management. The segment also benefited from $79 million in favorable Medicaid supplemental revenues related to prior periods.
In the Ambulatory Care segment, which includes United Surgical Partners International (USPI), Adjusted EBITDA increased 11.4% to $498 million. Same-facility system-wide net patient service revenues grew 7.7%, driven by an 8.3% increase in revenue per case despite a slight 0.6% decline in surgical cases.
Following these results, Tenet raised its full-year 2025 outlook, now expecting Adjusted EBITDA between $4.40 billion and $4.54 billion, a $395 million increase at the midpoint. The company also projects adjusted earnings per share of $15.55 to $16.21, well above the analyst consensus of $12.83.
The Board of Directors authorized a $1.5 billion increase to the share repurchase program, bringing the total available for repurchases to $1.78 billion as of July 22.
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