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What to Expect From Tenet Healthcare's (THC) Q3 Earnings

Zacks Equity Research

Tenet Healthcare Corporation THC will report third-quarter 2019 results on Nov 4, after market close.

The Zacks Consensus Estimate for earnings is pegged at 28 cents, indicating a 3.4% decline from the year-ago reported figure.

In the last reported quarter, the company’s earnings of 56 cents per share, beat the Zacks Consensus Estimate by 27.3% and grew 14.3% year over year. This upside is primarily driven by the Hospital & Other segment, volume growth in hospital portfolio and earnings growth at United Surgical Partners International (USPI).

Let’s see how things are shaping up prior to this announcement:

The company’s to-be-reported quarter is likely to have suffered softer revenues, affected by lower admissions. Number of licensed beds might have decreased due to the company’s divestitures.

The consensus mark for adjusted patient admissions and licensed beds implies a decrease of 3.7% and 4%, respectively, from the prior-year reported numbers.

Nevertheless, adjusted patient days are expected to have improved marginally in the third quarter. The consensus mark for the same indicates an uptick of 3.8% from the year-ago reported figure.

The company’s USPI segment is likely to have witnessed better surgical and non-surgical volumes, retaining its second-quarter momentum. Moreover, Tenet Healthcare’s Conifer segment is expected to have seen growth on the back of its initiative to boost cost and service structure.

What the Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Tenet Healthcare this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Tenet Healthcare has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 28 cents.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Tenet Healthcare Corporation Price and EPS Surprise

Tenet Healthcare Corporation Price and EPS Surprise

Tenet Healthcare Corporation price-eps-surprise | Tenet Healthcare Corporation Quote

Zacks Rank: Tenet Healthcare sports a Zacks Rank #1, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult for the stock this time around.

Stocks to Consider

Some stocks worth considering from the medical sector with the perfect mix of elements to surpass estimates in the next releases are as follows:

Acadia Healthcare Company, Inc. ACHC is set to report third-quarter earnings on Nov 5. The stock has a Zacks Rank #3 and an Earnings ESP of +1.34%.

AmerisourceBergen Corporation ABC is slated to announce third-quarter earnings on Nov 7. The stock has an Earnings ESP of +0.55% and is Zacks #3 Ranked.

Aurora Cannabis Inc. ACB is set to report third-quarter earnings on Nov 11. It has a Zacks Rank of 3 and an Earnings ESP of +25.76%.

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