Latest news with #TenetHealthcare
Yahoo
5 days ago
- Business
- Yahoo
Investors Heavily Search Tenet Healthcare Corporation (THC): Here is What You Need to Know
Tenet Healthcare (THC) has been one of the most searched-for stocks on lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this hospital operator have returned +11.5% over the past month versus the Zacks S&P 500 composite's +5.2% change. The Zacks Medical - Hospital industry, to which Tenet belongs, has gained 9.7% over this period. Now the key question is: Where could the stock be headed in the near term? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. For the current quarter, Tenet is expected to post earnings of $2.84 per share, indicating a change of +22.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +2% over the last 30 days. The consensus earnings estimate of $12.72 for the current fiscal year indicates a year-over-year change of +7.1%. This estimate has changed +0.5% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $13.61 indicates a change of +7% from what Tenet is expected to report a year ago. Over the past month, the estimate has changed +0.3%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Tenet. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. In the case of Tenet, the consensus sales estimate of $5.15 billion for the current quarter points to a year-over-year change of +0.9%. The $20.9 billion and $21.93 billion estimates for the current and next fiscal years indicate changes of +1.1% and +5%, respectively. Tenet reported revenues of $5.22 billion in the last reported quarter, representing a year-over-year change of -2.7%. EPS of $4.36 for the same period compares with $3.22 a year ago. Compared to the Zacks Consensus Estimate of $5.14 billion, the reported revenues represent a surprise of +1.64%. The EPS surprise was +40.19%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period. Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Tenet is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Tenet. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Medscape
28-05-2025
- Business
- Medscape
Five Florida Hospitals Sue Safety Ratings System
Five Tenet Healthcare hospitals are suing a leading provider of hospital safety ratings in federal court, alleging that it 'pressures hospitals to participate and pay or else suffer devastating and misleading public 'safety' grades.' The South Florida hospitals all got 'D' or 'F' grades in the fall 2024 ratings from Leapfrog Group's Hospital Safety Grade website after they declined to answer the company's surveys. The hospitals also received poor overall and patient-satisfaction ratings from Medicare. Leah Binder, Leapfrog's president and CEO, told Medscape Medical News that the nonprofit organization stands by its ratings. 'The Tenet Healthcare system has disgraceful performance on patient safety,' she said, 'and that is what they should be spending their money to address.' The legal battle pits Tenet Healthcare, which made a net $20.7 billion in revenue last year, against a nonprofit with a recent annual revenue of just $7.6 million but significant influence over hospital reputations. Methodology Under Fire At issue: Should hospitals be punished when they decline to provide data for Leapfrog's safety ratings? Until recently, Leapfrog gave average scores on several measures to hospitals that refused to respond to surveys. The organization changed course as of the fall 2024 ratings and now automatically gives the lowest rating possible to nonparticipating hospitals on four of 30 measures — Computerized Physician Order Entry, Bar Code Medication Administration, Intensive Care Unit Physician Staffing, and Hand Hygiene Score. As a result, nonparticipating hospitals get worse safety ratings because their scores on these measures count toward their overall letter grades. Among the five hospitals that are suing, Good Samaritan (West Palm Beach), Delray (Delray Beach), and Palm Beach Gardens got 'F' grades. West Boca (Boca Raton) and St. Mary's (West Palm Beach) got 'D' grades. The lawsuit, filed on April 30, said the hospital stopped responding to Leapfrog's 'excessive' data requests in 2021. The hospitals contended Leapfrog 'relies on invented data for some hospitals but not others.' The lowest-possible rating (15/100) for handwashing at the Delray hospital, for example, is 'deceptively communicating to consumers that Delray Medical Center doctors and nurses don't adequately wash their hands, among other false statements — with no data whatsoever to support that conclusion.' Binder defended the change in methodology. 'We continuously received complaints from hundreds of hospitals that do report to the survey,' she said. An expert panel recommended a move toward standardized low scores for nonparticipating hospitals, she said, and Leapfrog changed its methodology. Ratings System Says It's Being Transparent Binder said Leapfrog, founded 25 years ago by employers and others seeking better hospital safety information, is open about its data and methods. Leapfrog uses patient satisfaction survey data that are used, in part, to determine physician compensation, raises, and bonuses. 'It's pretty easy for us to defend the responsibility with which Leapfrog issues these grades,' Binder said. 'Even if, for some reason, we felt like we wanted to show bias towards some hospital or against another hospital, it would be really hard to do that when we're putting the entire methodology out there.' According to Leapfrog, refusing to participate in the company's surveys isn't a ticket to a poor grade. About 20% of 2829 hospitals rated in the Spring 2025 Hospital Safety Grades report didn't respond to surveys, the company said in response to queries from Medscape Medical News . Among those, six got an 'A,' 20 got a 'B,' 380 got a 'C,' 167 got a 'D,' and 19 got an 'F.' Leapfrog described its methodology regarding the four measures in small print at the bottom of webpages that report individual hospital safety grades. See, for example, the Palm Beach Gardens hospital's ' handwashing' page on the Hospital Safety Grade website. 'I don't think it's that fine of print,' Binder said. 'If you're digging into it, you're going to see that we make it clear.' 'Self-Reported, Biased, and Subject to Manipulation' The lawsuit also claims that data provided by participating hospitals 'is self-reported, biased, and subject to manipulation.' Binder responded that self-reported data goes through an 'intensive verification process,' including on-site verifications at randomly selected hospitals each year. However, a 2019 New England Journal of Medicine Catalyst report noted that 'Leapfrog leadership stated that they had only done a formal audit for approximately five hospitals of about 2600 in the past year, and only 72 hospitals underwent an electronic audit.' The rate-the-raters report graded hospital quality ratings systems and gave a C to the Medicare system and a C-minus to Leapfrog. The US News & World Report grading system received a B, and Healthgrades got a D-minus. In the new lawsuits, the 5 hospitals also claim that Leapfrog 'has used the tens of millions of dollars of revenue it has collected from participating hospitals and other sponsors in its pay-to-play system to pay exorbitant salaries to its owner and executives. Between 2019 and 2023, [Leapfrog] has paid over 3 million dollars in salary and benefits to Leah Binder — its CEO.' 'Hospitals, researchers, and businesses can license Leapfrog data for a fee. This has no influence on ratings…,' Leapfrog said in a statement. The CEO of Tenet Healthcare, the owner of the five hospitals that are suing, made $24.7 million in compensation in 2024, according to Becker's Hospital Review. Hospitals Tout Performance but Ignore Federal Ratings The lawsuit described the five South Florida hospitals as award-winning and 'high-performing' with 'reputations for being high-quality healthcare systems that put patient care first.' However, the lawsuit failed to mention that the hospitals all received low scores from Medicare's hospital comparison tool. On a 5-star scale, Good Samaritan and St. Mary's have 1-star overall and patient-satisfaction ratings. Palm Beach Gardens has 1- and 2-star ratings on the measures, respectively, while West Boca and Delray have 2- and 1-star ratings, respectively. Their scores are 'among the worst in the country,' Binder said. 'They are performing extremely poorly in the eyes of their own patients.' The hospitals declined to speak on the record about the lawsuit or answer questions regarding their poor ratings under Medicare's grading system. In a statement to Medscape Medical News , they said, 'our hospitals are continuously working to improve the patient experience and have been recognized repeatedly for our leadership in quality, innovation, and compassionate care.' Legal Expert: Facts, Not Grades, Are Key How vulnerable is Leapfrog in court? Eric Goldman, JD, MBA, a professor at California's Santa Clara University School of Law, Santa Clara, California, who has studied online rating systems, said this case is different than a filmmaker suing a movie critic over a bad review. 'When it comes to something like hospitals, the consequences [of ratings] are much higher,' he told Medscape Medical News . 'You watch a bad movie, you lose 20 bucks and 2 hours of your time. You go to the wrong hospital, you might be dead.' Goldman suggested the legal issue isn't the grades themselves — which are opinion and therefore protected under the First Amendment — but whether Leapfrog is following its own rules. 'The legal question is whether, by stating a methodology and then failing to follow it, Leapfrog is publishing false information,' he said. 'What's made it false isn't their grade but the fact that the grade is a product of reliance upon inaccurate data or the failure to process that data in accordance with their stated policies.' He elaborated, 'I don't think that if Leapfrog assigns a hospital an 'F' that it would have the basis to sue. It might not be a credible grade, but it's still not actionable. But if they're reporting that the hospitals are not performing on certain criteria, that's the potential fact claim that could be the basis of a lawsuit.' According to Goldman, Leapfrog's strongest defense may be the market itself. 'Leapfrog is absolutely free to assign a grade however it wants. That is its prerogative, and that's constitutionally protected as an opinion,' he said. 'Ultimately, the market decides how credible they find Leapfrog's methodology. If people find it credible, they continue to use it. If they don't, they're not required to.'
Yahoo
17-05-2025
- Business
- Yahoo
Here's Why Tenet Healthcare (THC) is a Strong Momentum Stock
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics. For momentum investors, upward or downward trends in a stock's price or earnings outlook take precedent, so they'll want to zero in on the Momentum Style Score. This Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates. Founded in 1967 and headquartered in Dallas, TX, Tenet Healthcare Corp., is an investor-owned health care services company, which owns and operates general hospitals and related health care facilities for urban and rural communities in numerous states, and has offices in California and Florida. The company has investments in other health care companies and is one of the largest investor-owned health care delivery systems in the United States. THC boasts a Momentum Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Tenet Healthcare has seen some interesting price action recently; the stock is up 10% over the past one week and up 34.7% over the past four weeks. And in the last one-year period, THC has gained 28.2%. As for the stock's trading volume, 1,605,495.13 shares on average were traded over the last 20 days. Momentum investors also pay close attention to a company's earnings. For THC, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.66 to $12.69 per share for 2025. THC boasts an average earnings surprise of 26.4%. THC should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tenet Healthcare Corporation (THC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
13-05-2025
- Business
- Yahoo
THC Q1 Earnings Call: Outpatient Momentum and Cost Controls Drive Outperformance
Hospital operator Tenet Healthcare (NYSE:THC) beat Wall Street's revenue expectations in Q1 CY2025, but sales fell by 2.7% year on year to $5.22 billion. The company expects the full year's revenue to be around $20.8 billion, close to analysts' estimates. Its non-GAAP profit of $4.36 per share was 39.2% above analysts' consensus estimates. Is now the time to buy THC? Find out in our full research report (it's free). Revenue: $5.22 billion vs analyst estimates of $5.15 billion (2.7% year-on-year decline, 1.3% beat) Adjusted EPS: $4.36 vs analyst estimates of $3.13 (39.2% beat) Adjusted EBITDA: $1.16 billion vs analyst estimates of $995.3 million (22.3% margin, 16.9% beat) The company reconfirmed its revenue guidance for the full year of $20.8 billion at the midpoint Management raised its full-year Adjusted EPS guidance to $12.56 at the midpoint, a 2.2% increase EBITDA guidance for the full year is $4.08 billion at the midpoint, in line with analyst expectations Operating Margin: 18.1%, down from 61.2% in the same quarter last year Free Cash Flow Margin: 12.3%, up from 6.4% in the same quarter last year Same-Store Sales rose 2.9% year on year (1.8% in the same quarter last year) Market Capitalization: $14.36 billion Tenet Healthcare began 2025 with results that surpassed Wall Street's expectations for revenue and non-GAAP earnings per share. Management attributed this outperformance to continued growth in its ambulatory surgery business (USPI), effective cost controls, and a favorable mix of higher-acuity cases, particularly in its hospital segment. CEO Saumya Sutaria highlighted that disciplined expense management and capacity expansion enabled the company to handle increased patient demand without a corresponding spike in contract labor costs. Looking ahead, management reaffirmed its full-year revenue guidance and raised projected non-GAAP earnings per share, expressing confidence in sustained demand and the company's growth initiatives. CFO Sun Park noted that priorities remain focused on expanding higher-acuity services, disciplined capital deployment, and margin improvement, while monitoring policy uncertainties affecting healthcare reimbursement. The company expects to remain active in capital allocation, emphasizing acquisitions in ambulatory care and ongoing share repurchases. Tenet Healthcare's senior leaders emphasized that operational discipline and targeted growth initiatives were the main contributors to the quarter's performance. The company's strategic priorities centered on expanding outpatient care, optimizing labor costs, and focusing investments on higher-acuity services. Ambulatory growth focus: Management reported robust performance from United Surgical Partners International (USPI), with a 6.8% increase in same-facility revenues and a 12% rise in total joint replacements. CEO Saumya Sutaria cited the ongoing shift to higher-acuity procedures in ambulatory settings as a key driver. Hospital segment efficiency: Hospital operations benefited from an improved payer mix and higher patient acuity, resulting in a 4.4% increase in same-store admissions and a 2.8% rise in revenue per adjusted admission. Management pointed to effective recruiting and retention strategies that reduced reliance on contract labor. Cost management discipline: Both CEO Sutaria and CFO Sun Park highlighted incremental improvements in salary, wages, and benefits as a percentage of revenue, along with tighter control of supply and operating expenses. These measures helped sustain margins despite modest revenue declines. M&A and capacity expansion: The company continued to invest in new ambulatory surgery centers and hospital expansions, including a new partnership in Texas and investments in fast-growing markets like Arizona. Management plans to allocate around $250 million annually to ambulatory acquisitions, with a healthy pipeline in place. Policy and reimbursement landscape: Management acknowledged ongoing healthcare policy uncertainty but stated that no strategic changes were being made in response. Engagement with policymakers and contingency planning remain lower priorities compared to growth and cost control. Management's outlook for the rest of the year centers on sustaining volume growth, expanding higher-acuity services, and executing disciplined capital allocation while remaining attentive to external policy risks. Ambulatory service expansion: The company is prioritizing growth in outpatient surgery, particularly higher-acuity specialties, aiming to capture more procedures shifting from hospital to ambulatory centers. Management believes this shift will continue to support revenue and margin growth. Labor cost stability: Continued efforts to recruit and retain full-time staff instead of relying on contract labor are expected to help stabilize or further improve labor costs, supporting operating margins. Policy risk monitoring: Management noted that while reimbursement and regulatory uncertainties persist, especially around Medicaid and exchange programs, current business strategy remains unchanged. However, contingency plans are in place if policy changes materially affect operations. Stephen Baxter (Wells Fargo): Asked about any unusual items in Q1 besides Medicaid supplemental payments; management stated no other period-specific items impacted results and reiterated the outperformance was due to core operations. Greg Hinenbach (Morgan Stanley): Inquired about the size and quality of the ambulatory acquisition pipeline. CEO Sutaria said the pipeline is healthy and the company aims to invest $250 million annually in new centers. Joanna Gajuk (Bank of America): Questioned hospital segment margin drivers, excluding Medicaid adjustments. Management cited improved cost controls, higher acuity, and recruiting/retention success as main factors. Ryan Langston (TD Cowen): Asked about further opportunities for labor efficiency. Management explained the current focus is on maintaining staff retention and balancing contract labor for capacity, rather than pursuing further cuts. Ben Hendrix (RBC Capital Markets): Sought clarity on the sustainability of ambulatory rate growth. Management believes rate momentum should persist due to ongoing service line shifts and favorable contracting trends. In the coming quarters, the StockStory team will be watching (1) the pace and success of new ambulatory surgery center openings and acquisitions, (2) management's ability to sustain improved labor cost ratios through recruitment and retention, and (3) any signs of regulatory or reimbursement changes that could impact revenue streams from Medicaid and exchange programs. The effectiveness of capital deployment in both organic investments and share repurchases will also be closely scrutinized. Tenet Healthcare currently trades at a forward P/E ratio of 12.5×. Should you double down or take your chips? The answer lies in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
12-05-2025
- Business
- Yahoo
Acadia Healthcare (ACHC) To Report Earnings Tomorrow: Here Is What To Expect
Behavioral health company Acadia Healthcare (NASDAQ:ACHC) will be reporting earnings tomorrow after the bell. Here's what to expect. Acadia Healthcare missed analysts' revenue expectations by 0.6% last quarter, reporting revenues of $774.2 million, up 4.2% year on year. It was a softer quarter for the company, with a miss of analysts' EPS estimates and EBITDA guidance for next quarter missing analysts' expectations. Is Acadia Healthcare a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Acadia Healthcare's revenue to be flat year on year at $769.7 million, slowing from the 9.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.36 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Acadia Healthcare has missed Wall Street's revenue estimates three times over the last two years. Looking at Acadia Healthcare's peers in the hospital chains segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Tenet Healthcare's revenues decreased 2.7% year on year, beating analysts' expectations by 1.3%, and HCA Healthcare reported revenues up 5.7%, topping estimates by 0.5%. Tenet Healthcare traded up 15.6% following the results while HCA Healthcare was down 2.8%. Read our full analysis of Tenet Healthcare's results here and HCA Healthcare's results here. Investors in the hospital chains segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. Acadia Healthcare is down 9% during the same time and is heading into earnings with an average analyst price target of $46.38 (compared to the current share price of $24.01). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
