Tenet Healthcare Stock Climbed to a 22-Year High Today. Here’s Why

Tenet Healthcare (THC) shares soared to a more than two-decade high after the hospital and surgical center chain posted stronger-than-expected results and boosted its outlook as it brought in more patients who paid more for services.

The company reported second-quarter adjusted earnings per share (EPS) of $2.31, with net operating revenue up less than 1% to $5.1 billion. Both exceeded forecasts. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose $102 million to $945 million.

Tenet now anticipates full-year operating revenue in the range of $20.6 billion to $21.0 billion, up from an earlier outlook of $20 billion to $20.4 billion.

Shares of Tenet rose nearly 5% today, bringing their year-to-date climb over 90%. The stock is now at levels last seen in 2002.

Tenet is the second hospital provider this week to post strong numbers.  HCA Healthcare also beat profit and sales estimates and raised its guidance as it, too, had higher patient volumes.

Net operating revenue for Tenet’s ambulatory segment jumped 21.1% to $1.14 billion on higher patient services spending. Hospital segment revenue slipped 4.3% to $3.96 billion, primarily related to a reduction in facilities, although admissions climbed.