Tenet Healthcare Corporation (NYSE:THC) is scheduled to report Q3 earnings results after markets close for trading on October 20, 2020.
The company is expected to report earnings of $0.24/share on revenue of $4.393 billion. The consensus earnings per share (EPS) of $0.24/share is based on a poll of 15 analysts and represents a decline in eps of −58.1% over the same quarter last year, when the company reported earnings of $0.58/share.
The revenue forecast of $4.393 billion based on a poll of 14 analysts implies a year-over-year (YoY) decline in revenue of −3.8%. Last year the company reported $4.568 billion in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.
What are your expectations from Tenet Healthcare Corporation for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price did not react much to the update.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|August 3, 2020||$26.44||$26.59||0.6%||Increase|
|May 4, 2020||$17.49||$18.90||8.1%||Increase|
|February 24, 2020||$34.20||$29.25||−14.5%||Decline|
|November 4, 2019||$25.88||$28.11||8.6%||Increase|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.21, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.21 implies a 0.1% chance of earnings manipulation.
Fundamentals And Technical Analysis
Tenet Healthcare Corporation is currently trading at $28.86/share, down −0.4% for the day. The company is trading at approximately 73.5% of its 52-week high of $39.37/share. The company’s stock price is up 8.5% since the last earnings report and up 3.6% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 54.13 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of −46.58 and a forward P/E multiple of 7.74.
Tenet Healthcare Corporation’s current share price also implies a price-to-book (P/B) multiple of −11.78. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$28.86|
|P/E Ratio (Fwd)||7.7x|
|Price To Sales||0.2x|
|Total Debt / Total Capital||74.1%|
|Levered Free Cash Flow||$2.685 billion|
|EV / EBITDA||6.6x|
Tenet Healthcare Corporation is a mid-cap stock with a market capitalization of $3.052 billion and a total enterprise value of $17.877 billion. The company operates in the Healthcare sector and the Healthcare Providers & Services industry.
Tenet Healthcare Corporation operates as a diversified healthcare services company. The company operates through three segments: Hospital Operations and Other, Ambulatory Care, and Conifer. Its general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies. The company also provides intensive and critical care, and coronary care units; cardiovascular, digestive disease, neurosciences, musculoskeletal, and obstetrics services; outpatient services, including physical therapy; cardiothoracic surgery, complex spinal surgery, neonatal intensive care, and neurosurgery services; quaternary care services in heart and kidney transplants; and limb-salvaging vascular procedures, acute level 1 trauma services, intravascular stroke care, minimally invasive cardiac valve replacement, imaging technology, and telemedicine access for various medical specialties. In addition, it operates ambulatory surgery and urgent care centers, imaging centers, surgical, off-campus emergency, and micro-hospitals; and offers healthcare business process services in the areas of hospital and physician revenue cycle management, as well as value-based care solutions to healthcare systems, individual hospitals, physician practices, self-insured organizations, health plans, and other entities. As of December 31, 2019, the company operated 65 hospitals, 24 surgical hospitals, and approximately 159 outpatient centers, as well as 260 ambulatory surgery, 39 urgent care, and 23 imaging centers in the United States. Tenet Healthcare Corporation was incorporated in 1975 and is headquartered in Dallas, Texas.