Tenet Healthcare (NYSE:THC) is gearing up to announce its quarterly earnings on Tuesday, 2025-04-29. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Tenet Healthcare will report an earnings per share (EPS) of $3.17.
Tenet Healthcare bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Historical Earnings Performance
In the previous earnings release, the company beat EPS by $0.61, leading to a 5.85% increase in the share price the following trading session.
Here's a look at Tenet Healthcare's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 2.83 | 2.33 | 1.89 | 1.45 |
| EPS Actual | 3.44 | 2.93 | 2.31 | 3.22 |
| Price Change % | 6.0% | -3.0% | 3.0% | 3.0% |
Performance of Tenet Healthcare Shares
Shares of Tenet Healthcare were trading at $122.1 as of April 25. Over the last 52-week period, shares are up 10.22%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Insights Shared by Analysts on Tenet Healthcare
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Tenet Healthcare.
With 5 analyst ratings, Tenet Healthcare has a consensus rating of Outperform. The average one-year price target is $161.0, indicating a potential 31.86% upside.
Peer Ratings Comparison
This comparison focuses on the analyst ratings and average 1-year price targets of Encompass Health, Universal Health Services and Ensign Group, three major players in the industry, shedding light on their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Encompass Health, with an average 1-year price target of $122.33, suggesting a potential 0.19% upside.
- Analysts currently favor an Neutral trajectory for Universal Health Services, with an average 1-year price target of $219.86, suggesting a potential 80.07% upside.
- Analysts currently favor an Outperform trajectory for Ensign Group, with an average 1-year price target of $160.33, suggesting a potential 31.31% upside.
Summary of Peers Analysis
The peer analysis summary outlines pivotal metrics for Encompass Health, Universal Health Services and Ensign Group, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Tenet Healthcare | Outperform | -5.71% | $4.14B | 7.95% |
| Encompass Health | Outperform | 3.59% | $585.90M | 7.17% |
| Universal Health Services | Neutral | 11.08% | $3.71B | 5.01% |
| Ensign Group | Outperform | 15.49% | $178.91M | 4.45% |
Key Takeaway:
Tenet Healthcare ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, Tenet Healthcare is at the top among its peers.
About Tenet Healthcare
Tenet Healthcare is a Dallas-based healthcare services organization. It operates acute and specialty hospitals (47 as of December 2024) and over 500 ambulatory surgery centers and other outpatient facilities across the US, primarily in the South. Through its Conifer segment, Tenet also provides revenue cycle management solutions.
Financial Milestones: Tenet Healthcare's Journey
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Challenges: Tenet Healthcare's revenue growth over 3 months faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -5.71%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 6.27%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Tenet Healthcare's ROE excels beyond industry benchmarks, reaching 7.95%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Tenet Healthcare's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.09% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a below-average debt-to-equity ratio of 3.16, Tenet Healthcare adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for Tenet Healthcare visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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