The 10-second takeaway
For the quarter ended June 30 (Q2), Tenet Healthcare met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped to a loss.
Gross margins improved, operating margins grew, net margins contracted.
Tenet Healthcare logged revenue of $2.46 billion. The 12 analysts polled by S&P Capital IQ foresaw sales of $2.45 billion on the same basis. GAAP reported sales were 3.4% higher than the prior-year quarter's $2.37 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.10. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.05 per share. GAAP EPS were -$0.19 for Q2 against $0.11 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.2%, 10 basis points better than the prior-year quarter. Operating margin was 7.5%, 20 basis points better than the prior-year quarter. Net margin was -0.1%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.45 billion. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $9.99 billion. The average EPS estimate is $0.53.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 360 members rating the stock outperform and 70 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give Tenet Healthcare a green thumbs-up, and 17 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tenet Healthcare is hold, with an average price target of $5.98.
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