Tenet Healthcare (NYSE:THC) reported better-than-expected earnings for the third quarter. However, the company’s fourth-quarter outlook fell short of expectations. Tenet’s Q3 revenue declined 1.9% to $4.80 billion, while adjusted earnings per share (EPS) fell almost 28% to $1.44. Analysts were expecting an adjusted EPS of $1.24 on revenue of $4.81 billion.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Shares of the hospital and healthcare facilities operator plunged nearly 17% in Friday’s pre-market trading session in reaction to the poor outlook. Tenet’s Q3 performance was impacted by a spike in COVID-19 cases among its workforce.
Meanwhile, the company expects its Q4 revenue to be in the range of $4.816 billion to $5.016 billion and adjusted EPS of $1.00 to $1.54. Analysts pegged Q4 revenue at $5.04 billion and adjusted EPS at $1.80.
For the full year, Tenet projects adjusted EPS between $5.88 to $6.42 and revenue in the range of $19 billion to $19.2 billion. Analysts’ full-year projections were for EPS of $6.38 and revenue of $19.3 billion.
Meanwhile, the company announced a $1 billion share repurchase program. Tenet will provide more details about its Q3 performance and outlook via its earnings conference call scheduled for Friday morning.
Is THC Stock a Buy?
Tenet commands the Street’s Strong Buy consensus rating backed by 11 unanimous Buys. The average THC stock price target of $95.73 implies 76.2% upside potential from current levels. Tenet Healthcare stock has plunged 33.5% year-to-date.
