Tenet Healthcare (THC) Q3 Earnings Report Preview: What To Look For

Hospital operator Tenet Healthcare (NYSE:THC) will be announcing earnings results this Tuesday morning. Here’s what you need to know.

Tenet Healthcare beat analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $5.27 billion, up 3.3% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.

Is Tenet Healthcare a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Tenet Healthcare’s revenue to grow 2.6% year on year to $5.26 billion, improving from the 1.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.35 per share.Tenet Healthcare Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Tenet Healthcare has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.7% on average.

Looking at Tenet Healthcare’s peers in the healthcare providers & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. HCA Healthcare delivered year-on-year revenue growth of 9.6%, beating analysts’ expectations by 3.3%, and Quest reported revenues up 13.2%, topping estimates by 3.3%. Quest traded down 4.9% following the results.

Read our full analysis of HCA Healthcare’s results here and Quest’s results here.

There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 7.6% on average over the last month. Tenet Healthcare is up 4.6% during the same time and is heading into earnings with an average analyst price target of $213.29 (compared to the current share price of $210.38).

Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

View Comments