Why Is Hospital Chain Operator Tenet Healthcare Stock Soaring On Tuesday?
Portfolio Pulse from Vandana Singh
Tenet Healthcare Corporation (NYSE:THC) reported first-quarter sales of $5.37 billion, a 7% increase year over year, surpassing the consensus of $5.15 billion. Adjusted EBITDA for Q1 2024 was $1.024 billion, up from $832 million the previous year, driven by strong admission growth, favorable payer mix, and improved contract labor costs. The company raised its fiscal year 2024 revenue guidance to $20 billion-$20.4 billion and adjusted EPS guidance to $8.37-$9.41, significantly above the consensus of $6.11. Shares of THC surged 9.97% to $109.08.
April 30, 2024 | 2:53 pm
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Tenet Healthcare reported a significant beat on Q1 sales and raised FY2024 guidance, leading to a 9.97% increase in its stock price to $109.08.
The positive earnings report and upward revision of the fiscal year 2024 guidance indicate strong operational performance and future growth prospects, which are key drivers of the stock's short-term price surge. The significant beat on both top and bottom lines compared to consensus estimates, along with raised revenue and EPS guidance for FY2024, suggest investor confidence in THC's continued growth, leading to a bullish outlook for the stock.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100