Tenet Healthcare Q3 revenue beats on same-store sales growth
Overview
US hospital operator's Q3 net operating revenue rose 6.5%, beating analyst expectations
Adjusted EPS for Q3 jumped 79.5%, beating analyst expectations
Company raised FY 2026 adjusted EBITDA outlook
Outlook
Tenet raises FY 2026 adj EBITDA outlook to $5.05 bln-$5.20 bln from prior view
Company lifts FY 2026 adj free cash flow outlook to $2.825 bln-$3.125 bln
Result Drivers
SAME-STORE REVENUE GROWTH - Co said sustained strength in same-store revenue growth drove Q3 results, per CEO Saum Sutaria
EXPENSE MANAGEMENT - Co attributed margin improvement to disciplined expense management and operating initiatives
RCM AGREEMENTS TRANSITION - Timing-related adjustments and transition activities under RCM Agreements contributed $147 mln favorable net impact to Q3 Adjusted EBITDA
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Net Operating Revenue | Beat | $5.63 bln | $5.52 bln (18 Analysts) |
Q3 Adjusted EPS | Beat | $6.64 | $4.62 (20 Analysts) |
Q3 EPS | $12.41 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the healthcare facilities & services peer group is "buy"
Wall Street's median 12-month price target for Tenet Healthcare Corp is $285.00, about 6.1% above its October 28 closing price of $268.50
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)