Exploring Tenet Healthcare's Earnings Expectations
Tenet Healthcare (NYSE:THC) is preparing to release its quarterly earnings on Tuesday, 2025-07-22. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Tenet Healthcare to report an earnings per share (EPS) of $2.86.
The market awaits Tenet Healthcare's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Earnings Track Record
The company's EPS beat by $1.22 in the last quarter, leading to a 3.32% increase in the share price on the following day.
Here's a look at Tenet Healthcare's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 3.14 | 2.83 | 2.33 | 1.89 |
| EPS Actual | 4.36 | 3.44 | 2.93 | 2.31 |
| Price Change % | 3.0% | 6.0% | -3.0% | 3.0% |
Market Performance of Tenet Healthcare's Stock
Shares of Tenet Healthcare were trading at $175.06 as of July 18. Over the last 52-week period, shares are up 27.66%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analysts' Take on Tenet Healthcare
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Tenet Healthcare.
Analysts have provided Tenet Healthcare with 12 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $192.33, suggesting a potential 9.87% upside.
Comparing Ratings Among Industry Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of Encompass Health, Universal Health Services and Ensign Group, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Encompass Health, with an average 1-year price target of $130.14, suggesting a potential 25.66% downside.
- Analysts currently favor an Neutral trajectory for Universal Health Services, with an average 1-year price target of $214.33, suggesting a potential 22.43% upside.
- Analysts currently favor an Outperform trajectory for Ensign Group, with an average 1-year price target of $156.0, suggesting a potential 10.89% downside.
Snapshot: Peer Analysis
The peer analysis summary offers a detailed examination of key metrics for Encompass Health, Universal Health Services and Ensign Group, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Tenet Healthcare | Outperform | -2.70% | $4.32B | 9.72% |
| Encompass Health | Outperform | 10.59% | $630.90M | 7.17% |
| Universal Health Services | Neutral | 6.66% | $3.70B | 4.71% |
| Ensign Group | Outperform | 16.12% | $188.12M | 4.27% |
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.
Discovering Tenet Healthcare: A Closer Look
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 Insights: Tenet Healthcare
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Negative Revenue Trend: Examining Tenet Healthcare's financials over 3 months reveals challenges. As of 31 March, 2025, the company experienced a decline of approximately -2.7% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 7.77%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Tenet Healthcare's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 9.72% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Tenet Healthcare's ROA excels beyond industry benchmarks, reaching 1.4%. This signifies efficient management of assets and strong financial health.
Debt Management: Tenet Healthcare's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 3.15.
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.
