Hospital operator Tenet Healthcare reported better-than-expected first-quarter earnings and revenue early Tuesday and increased its full-year outlook as hospital use trends improve. THC shares jumped Tuesday.
Tenet Healthcare announced Q1 EPS came in at $3.22, up 126% compared to first quarter 2023, while revenue grew 7% to $5.37 billion. Analysts predicted earnings of $1.45 per share and sales totaling $5.15 billion. Tenet's Q1 results also blew past its own Q1 EPS expectations of $1.24-$.150 and its revenue range of $5 billion-$5.2 billion.
The company's hospital segment saw operating revenues increase more than 6% vs. Q1 2023 due primarily to increased admissions and improved pricing. Tenet also saw same-hospital net patient service revenue per adjusted admission grow nearly 9%. This comes as patients appear to be starting to go the hospital for often in recent months, a positive for hospitals and health providers and a negative for insurers.
Tenet also raised its full-year view Tuesday and now forecasts revenue of $20 billion-$20.40 billion in 2024 with earnings between $8.37-$9.41 per share. The health provider previously expected revenue of $19.9 billion-$20.30 billion and EPS between $5.76-$6.90.
Tenet Healthcare stock surged 7.7% to 106.80 during market action Tuesday, setting up a possible jump to record highs after the stock retook support at its 50-day moving average. On Monday, THC advanced 3.1% to 99.15. Shares were down around 5.7% in April as of Monday's close.
Tenet Healthcare stock has a 94 Composite Rating out of a best-possible 99. Shares also have a 92 Relative Strength Rating and a 74 EPS Rating.
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