Core Insights - Tenet Healthcare (THC) reported quarterly earnings of $3.7 per share, exceeding the Zacks Consensus Estimate of $3.33 per share, and up from $2.93 per share a year ago, representing an earnings surprise of +11.11% [1] - The company achieved revenues of $5.29 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.02% and showing an increase from $5.12 billion year-over-year [2] - Tenet shares have increased approximately 71.3% year-to-date, significantly outperforming the S&P 500's gain of 16.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $4.13 on revenues of $5.39 billion, and for the current fiscal year, it is $15.82 on revenues of $21.16 billion [7] - The estimate revisions trend for Tenet was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Medical - Hospital industry, to which Tenet belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Performance - Net income available to common shareholders in Q3 2025 was $342 million, or $3.86 per diluted share, down from $472 million, or $4.89 per diluted share in Q3 2024[4] - Adjusted diluted earnings per share increased 26.3% to $3.70 in Q3 2025 compared to $2.93 in Q3 2024[3] - Operating income decreased to $889 million in Q3 2025, down from $1,089 million in Q3 2024, reflecting a decline in operating margin from 21.2% to 16.8%[34] - Basic earnings per share decreased to $3.89 in Q3 2025 from $4.93 in Q3 2024, a decline of 21.1%[34] - Net income available to Tenet Healthcare Corporation common shareholders for the nine months ended September 30, 2025, was $1,036 million, a decrease of 64.1% from $2,882 million in the same period of 2024[36] - Net income for the nine months ended September 30, 2025, was $1,723 million, compared to $3,492 million for the same period in 2024, indicating a decrease of 50.7%[40] Revenue and Growth - Net operating revenues for Q3 2025 were $5.289 billion, up from $5.126 billion in Q3 2024, representing a growth of 3.2%[4] - For the nine months ended September 30, 2025, net operating revenues were $15,783 million, a 1.2% increase from $15,602 million in the same period of 2024[36] - FY 2025 net operating revenues are projected to be between $21.150 billion and $21.350 billion[14] - Ambulatory Care Adjusted EBITDA for Q3 2025 was $492 million, reflecting a 12.1% increase over Q3 2024[3] - Ambulatory Care segment revenues for the three months ended September 30, 2025, reached $1,275 million, a 11.93% increase from $1,139 million in 2024[42] - Hospital Operations and Services segment revenues for the three months ended September 30, 2025, were $4,014 million, slightly up from $3,987 million in 2024, showing a growth of 0.68%[42] Cash Flow and Liquidity - Cash flows from operating activities for the nine months ended September 30, 2025, were $2.809 billion, compared to $2.378 billion for the same period in 2024[7] - Free cash flow for the nine months ended September 30, 2025, was $2.163 billion, up from $1.777 billion in the prior year[7] - Free cash flow for Q3 2025 was $778 million, a decrease of 6.2% from $829 million in Q3 2024[49] - Adjusted net cash provided by operating activities for Q3 2025 was $1,061 million, compared to $1,100 million in Q3 2024[49] - The company reported a net cash provided by operating activities of $2,809 million for the nine months ended September 30, 2025, compared to $2,378 million in 2024, an increase of 18.09%[40] - The company anticipates free cash flow for FY 2025 to be between $2,275 million and $2,525 million[61] Adjusted EBITDA and Margins - Consolidated Adjusted EBITDA in Q3 2025 rose 12.4% to $1.099 billion, with an Adjusted EBITDA margin of 20.8%[3] - Adjusted EBITDA for the three months ended September 30, 2025, was $1,099 million, up from $978 million in 2024, reflecting an increase of 12.34%[42] - Adjusted EBITDA is a key performance measure, with the company regularly reviewing it for each operating segment[25] - Adjusted EBITDA margin for FY 2025 is expected to be between 21.1% and 21.4% of net operating revenues[57] Debt and Equity - The company's ratio of net debt to Adjusted EBITDA improved to 2.30x at September 30, 2025, down from 2.45x at June 30, 2025[7] - Total shareholders' equity decreased to $4,014 million as of September 30, 2025, from $4,171 million on December 31, 2024, a decline of 3.77%[38] - Total current liabilities increased to $4,560 million as of September 30, 2025, compared to $4,310 million on December 31, 2024, marking an increase of 5.79%[38] Future Projections - The company expects FY 2025 Adjusted EBITDA to be in the range of $4.47 billion to $4.57 billion, a $50 million increase at the midpoint[3] - The company projects adjusted net income available to common shareholders for FY 2025 to be between $1,450 million and $1,480 million[52] - The projected diluted earnings per share for FY 2025 is estimated to be between $14.66 and $15.37[52] - Net cash provided by operating activities for FY 2025 is projected to be between $3,150 million and $3,500 million[61]

Core Insights - Tenet Healthcare Corporation reported strong financial results for the third quarter of 2025, with a focus on high acuity service lines and operational discipline leading to revenue growth and free cash flow [3][4][11] - The company raised its financial outlook for the full year 2025, reflecting confidence in continued growth across its markets [4][15] Financial Performance - Net operating revenues for Q3 2025 were $5,289 million, a 3.2% increase from $5,126 million in Q3 2024 [4][39] - Net income available to common shareholders decreased to $342 million, or $3.86 per diluted share, compared to $472 million, or $4.89 per diluted share in Q3 2024 [5][39] - Adjusted EBITDA for Q3 2025 was $1,099 million, up 12.4% from $978 million in Q3 2024, with an adjusted EBITDA margin of 20.8% [4][39] Segment Performance - The Ambulatory Care segment generated net operating revenues of $1,275 million in Q3 2025, up from $1,139 million in Q3 2024, with an adjusted EBITDA of $492 million [9][39] - The Hospital Operations and Services segment reported net operating revenues of $4,014 million in Q3 2025, slightly up from $3,987 million in Q3 2024, with an adjusted EBITDA of $607 million [13][39] Cash Flow and Capital Management - Cash flows from operating activities for the nine months ended September 30, 2025, were $2,809 million, compared to $2,378 million for the same period in 2024 [10][37] - Free cash flow for the nine months ended September 30, 2025, was $2,163 million, an increase from $1,777 million in the prior year [10][37] - The company repurchased 0.6 million shares for $93 million in Q3 2025 and 7.8 million shares for $1,188 million in the nine months ended September 30, 2025 [10][37] 2025 Financial Outlook - The full-year 2025 outlook for net operating revenues is projected to be between $21,150 million and $21,350 million, with adjusted EBITDA expected in the range of $4,470 million to $4,570 million [15][17] - The company anticipates adjusted diluted earnings per share to be between $15.93 and $16.26 for the full year 2025 [15][17]

Core Insights - Tenet Healthcare Corporation (THC) is scheduled to report its third-quarter 2025 results on October 28, 2025, with earnings estimated at $3.33 per share and revenues of $5.24 billion, reflecting year-over-year increases of 13.7% and 2.2% respectively [1][6] Financial Performance - The earnings estimate for the third quarter has remained stable over the past 60 days, indicating a year-over-year increase of 13.7%, while the revenue estimate suggests a growth of 2.2% [2] - For the full year 2025, the revenue estimate stands at $21.16 billion, implying a rise of 2.4% year-over-year, and the earnings per share estimate is $15.82, indicating a significant jump of 33.2% year-over-year [3] Earnings Prediction - The current model does not predict an earnings beat for Tenet Healthcare, as it has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [4] - The consensus estimate for adjusted patient admissions in total hospital operations suggests a 2.7% year-over-year growth, but on a same-hospital basis, there is a projected decrease of 5.7% [5] Segment Performance - The Ambulatory Care segment is expected to show strong performance, with operating revenues estimated to grow by 8.5% year-over-year, while the consensus indicates a 10.7% increase [7] - The Zacks Consensus Estimate for Hospital Operations and Services revenues is pegged at $3.99 billion, reflecting a slight increase of 0.2% from the previous year [8] Operational Challenges - Total hospital patient days are expected to decrease by 4.4% year-over-year, and the average length of stay is projected to decline by 8.8% [9][10] - Increased utilization is anticipated to lead to higher operating costs, contributing to uncertainty regarding an earnings beat [10]

Group 1 - Tenet Healthcare Inc. stock price is currently at $201.81, reflecting a 0.15% decrease in the current market session, but has increased by 4.52% over the past month and 28.04% over the past year [1] - The company's P/E ratio is 12.7, which is significantly lower than the industry average P/E ratio of 17.77 in the Health Care Providers & Services sector [6] - A lower P/E ratio may suggest that shareholders expect the stock to perform worse than its industry peers or that the stock is undervalued [6] Group 2 - The P/E ratio is a critical metric for long-term shareholders to evaluate market performance against historical earnings and industry standards [5] - While a low P/E ratio can indicate undervaluation, it may also reflect weak growth prospects or financial instability [9] - Investors should consider the P/E ratio alongside other financial metrics, industry trends, and qualitative factors for a comprehensive analysis of a company's financial health [9]

Core Insights - Tenet Healthcare Corporation (NYSE: THC) stock is reaching levels near both 52-week and all-time highs, last seen in September 2002, indicating strong market performance over two decades [1] Company Performance - The stock performance of Tenet Healthcare Corporation is highlighted as it approaches significant historical highs, suggesting positive investor sentiment and potential growth opportunities [1] Market Context - The current stock levels reflect a broader trend in the healthcare sector, where companies are experiencing increased investor interest and market activity [1]

Core Insights - Tenet Healthcare Corporation (NYSE: THC) stock is reaching levels near both 52-week and all-time highs, last seen in September 2002, indicating strong market performance over two decades [1] Company Performance - The stock performance of Tenet Healthcare Corporation is highlighted as it approaches significant historical highs, suggesting positive investor sentiment and potential growth opportunities [1]

Core Viewpoint - Tenet Healthcare (THC) has shown strong stock performance recently, with an 8.1% return over the past month, outperforming the S&P 500's 2.7% and the Zacks Medical - Hospital industry's 4.3% [1] Earnings Estimates - Tenet is expected to report earnings of $3.35 per share for the current quarter, reflecting a year-over-year increase of 14.3% [4] - The consensus earnings estimate for the current fiscal year is $15.54, indicating a year-over-year change of 30.8% [4] - For the next fiscal year, the consensus estimate is $15.96, showing a 2.7% increase from the previous year [5] Revenue Growth - The consensus sales estimate for the current quarter is $5.25 billion, representing a year-over-year change of 2.4% [10] - Estimated revenues for the current and next fiscal years are $21.15 billion and $22.14 billion, indicating changes of 2.4% and 4.6%, respectively [10] Recent Performance - In the last reported quarter, Tenet achieved revenues of $5.27 billion, a year-over-year increase of 3.3% [11] - The EPS for the same period was $4.02, compared to $2.31 a year ago, with a revenue surprise of 2.42% and an EPS surprise of 41.55% [11][12] Valuation - Tenet is graded A in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [16] - The evaluation of valuation multiples such as P/E, P/S, and P/CF suggests that Tenet's stock is fairly valued or undervalued relative to its historical values and peers [14][15] Conclusion - The Zacks Rank 2 for Tenet suggests potential outperformance in the near term, supported by strong earnings and revenue growth projections [17]

Group 1 - Tenet Healthcare Inc. stock is currently trading at $194.06, reflecting a 2.06% increase, with a 7.79% rise over the past month and a 16.67% increase over the past year, indicating optimism among long-term shareholders [1] - The price-to-earnings (P/E) ratio is a critical metric for investors, comparing the current share price to the company's earnings per share (EPS), and a higher P/E suggests expectations of better future performance [5] - Tenet Healthcare has a P/E ratio of 11.95, which is lower than the industry average of 17.68 in the Health Care Providers & Services sector, potentially indicating that the stock may be undervalued or expected to perform worse than peers [6] Group 2 - While a low P/E ratio can suggest undervaluation, it may also indicate weak growth prospects or financial instability, emphasizing the need for a comprehensive analysis of financial health [8]