Hospital operator Tenet Healthcare (NYSE: THC) will be reporting results tomorrow before the bell. Here’s what to expect.
Tenet Healthcare beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $5.12 billion, up 1.1% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates.
Is Tenet Healthcare a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Tenet Healthcare’s revenue to decline 3.8% year on year to $5.17 billion, a reversal from the 7.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.83 per share.
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 a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.5% on average.
Looking at Tenet Healthcare’s peers in the healthcare providers & services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. HCA Healthcare delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 0.7%, and Centene reported revenues up 3.4%, topping estimates by 4.4%. HCA Healthcare traded up 2.1% following the results while Centene was down 6.3%.
Read our full analysis of HCA Healthcare’s results here and Centene’s results here.
Investors in the healthcare providers & services segment have had steady hands going into earnings, with share prices flat over the last month. Tenet Healthcare is up 7.9% during the same time and is heading into earnings with an average analyst price target of $177.21 (compared to the current share price of $139.89).
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