The 10-second takeaway
For the quarter ended March 31 (Q1), Tenet Healthcare beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share dropped.
Margins dropped across the board.
Tenet Healthcare reported revenue of $2.54 billion. The 15 analysts polled by S&P Capital IQ anticipated sales of $2.49 billion on the same basis. GAAP reported sales were 2.5% higher than the prior-year quarter's $2.48 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 $0.13. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS of $0.13 for Q1 were 7.1% lower than the prior-year quarter's $0.14 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.6%, 40 basis points worse than the prior-year quarter. Operating margin was 8.3%, 280 basis points worse than the prior-year quarter. Net margin was 2.5%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.38 billion. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $9.68 billion. The average EPS estimate is $0.54.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 353 members out of 421 rating the stock outperform, and 69 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 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 $6.17.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.