Tenet Healthcare's (THC) stock soared 5.02% in intraday trading on Thursday, February 13, 2025, following the company's impressive fourth-quarter 2024 earnings report and upbeat 2025 guidance.
The healthcare services company reported fourth-quarter adjusted earnings per share of $3.44, surpassing analysts' estimates by 17.4% and its own guidance range. The strong quarterly performance was driven by higher same-hospital admissions, a favorable payer mix, increased Medicaid supplemental revenues, lower operating expenses, and facility buyouts and service line expansions in the Ambulatory Care unit.
For fiscal 2025, Tenet Healthcare provided robust guidance, projecting adjusted EBITDA growth of 7% at the midpoint, driven by anticipated growth in same-facility revenues, effective operational execution, and additional sites of care joining the Ambulatory Care portfolio. The company also expects continued strength in demand, high acuity growth, and further contributions from recent investments and partnerships in the Hospital segment.