Leerink Partnrs Issues Pessimistic Forecast for THC Earnings

Key Points

• Analysts at Leerink Partners have revised their FY2025 earnings estimate for Tenet Healthcare to $15.59 per share from a previous $15.61.
• In its latest quarterly report, Tenet Healthcare reported earnings of $4.02 per share, exceeding analysts' expectations of $2.84.
• Despite some analysts upgrading their ratings, 95.44% of Tenet Healthcare's stock is owned by hedge funds and institutional investors, indicating strong institutional interest.

Tenet Healthcare Corporation (NYSE:THC - Free Report) - Analysts at Leerink Partnrs dropped their FY2025 earnings estimates for Tenet Healthcare in a report released on Wednesday, October 22nd. Leerink Partnrs analyst W. Mayo now anticipates that the company will earn $15.59 per share for the year, down from their prior forecast of $15.61. The consensus estimate for Tenet Healthcare's current full-year earnings is $12.24 per share. Leerink Partnrs also issued estimates for Tenet Healthcare's Q4 2025 earnings at $4.06 EPS, Q1 2026 earnings at $4.81 EPS, Q2 2026 earnings at $4.41 EPS, Q3 2026 earnings at $3.63 EPS, FY2026 earnings at $17.36 EPS, FY2027 earnings at $20.55 EPS, FY2028 earnings at $23.46 EPS and FY2029 earnings at $26.00 EPS.

Tenet Healthcare (NYSE:THC - Get Free Report) last released its quarterly earnings data on Tuesday, July 22nd. The company reported $4.02 earnings per share for the quarter, topping analysts' consensus estimates of $2.84 by $1.18. The firm had revenue of $5.27 billion for the quarter, compared to analyst estimates of $5.16 billion. Tenet Healthcare had a net margin of 7.17% and a return on equity of 24.69%. The business's quarterly revenue was up 3.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.31 earnings per share.

A number of other analysts have also weighed in on THC. KeyCorp increased their price objective on shares of Tenet Healthcare from $205.00 to $225.00 and gave the stock an "overweight" rating in a research note on Wednesday, October 8th. Wolfe Research downgraded shares of Tenet Healthcare from an "outperform" rating to a "peer perform" rating in a report on Monday, July 28th. The Goldman Sachs Group assumed coverage on shares of Tenet Healthcare in a report on Tuesday, October 14th. They set a "buy" rating and a $224.00 price target on the stock. Truist Financial set a $225.00 price target on shares of Tenet Healthcare in a report on Tuesday, October 14th. Finally, Wall Street Zen raised shares of Tenet Healthcare from a "hold" rating to a "strong-buy" rating in a report on Saturday, July 26th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, Tenet Healthcare currently has an average rating of "Moderate Buy" and an average target price of $209.25.

Tenet Healthcare Stock Up 0.7%

NYSE:THC opened at $206.55 on Friday. The firm has a market capitalization of $18.25 billion, a P/E ratio of 13.22, a PEG ratio of 0.88 and a beta of 1.52. Tenet Healthcare has a 1-year low of $109.82 and a 1-year high of $208.25. The company's fifty day moving average price is $191.92 and its 200-day moving average price is $168.92. The company has a debt-to-equity ratio of 2.39, a current ratio of 1.71 and a quick ratio of 1.63.

Insider Transactions at Tenet Healthcare

In other news, EVP Lisa Y. Foo sold 8,000 shares of the firm's stock in a transaction dated Wednesday, August 20th. The shares were sold at an average price of $179.53, for a total value of $1,436,240.00. Following the transaction, the executive vice president directly owned 20,878 shares of the company's stock, valued at approximately $3,748,227.34. This trade represents a 27.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Christopher S. Lynch sold 3,952 shares of the firm's stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $176.39, for a total transaction of $697,093.28. Following the completion of the transaction, the director directly owned 12,358 shares in the company, valued at approximately $2,179,827.62. This represents a 24.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 90,722 shares of company stock valued at $17,161,015. Corporate insiders own 0.81% of the company's stock.

Hedge Funds Weigh In On Tenet Healthcare

Hedge funds and other institutional investors have recently modified their holdings of the business. Price T Rowe Associates Inc. MD increased its position in Tenet Healthcare by 6.5% during the first quarter. Price T Rowe Associates Inc. MD now owns 7,596,544 shares of the company's stock worth $1,021,736,000 after purchasing an additional 463,552 shares during the last quarter. Boston Partners increased its position in Tenet Healthcare by 95.0% during the second quarter. Boston Partners now owns 2,267,142 shares of the company's stock worth $398,949,000 after purchasing an additional 1,104,500 shares during the last quarter. Ameriprise Financial Inc. increased its position in Tenet Healthcare by 8.0% during the second quarter. Ameriprise Financial Inc. now owns 2,119,423 shares of the company's stock worth $373,020,000 after purchasing an additional 157,109 shares during the last quarter. Dimensional Fund Advisors LP increased its position in Tenet Healthcare by 12.2% during the first quarter. Dimensional Fund Advisors LP now owns 1,675,199 shares of the company's stock worth $225,297,000 after purchasing an additional 181,667 shares during the last quarter. Finally, Nuveen LLC acquired a new stake in Tenet Healthcare during the first quarter worth about $218,549,000. 95.44% of the stock is owned by hedge funds and other institutional investors.

About Tenet Healthcare

Tenet Healthcare Corporation operates as a diversified healthcare services company in the United States. The company operates through two segments: Hospital Operations and Services, and Ambulatory Care. Its general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies.

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