Tenet Healthcare (THC) Surpasses Q1 Earnings and Revenue Estimates

Core Insights - Tenet Healthcare (THC) reported quarterly earnings of $4.36 per share, exceeding the Zacks Consensus Estimate of $3.11 per share, and showing an increase from $3.22 per share a year ago, resulting in an earnings surprise of 40.19% [1] - The company generated revenues of $5.22 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.64%, although this represents a decline from year-ago revenues of $5.37 billion [2] - Tenet has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The future performance of Tenet's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.68 on revenues of $5.16 billion, and for the current fiscal year, it is $12.15 on revenues of $20.87 billion [7] Industry Context - The Medical - Hospital industry, to which Tenet belongs, is currently ranked in the top 6% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]