The Tenet Healthcare Corporation (NYSE:THC) Full-Year Results Are Out And Analysts Have Published New Forecasts

It's been a good week for Tenet Healthcare Corporation (NYSE:THC) shareholders, because the company has just released its latest annual results, and the shares gained 2.7% to US$137. Tenet Healthcare reported US$21b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$32.70 beat expectations, being 3.0% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Tenet Healthcare

Following last week's earnings report, Tenet Healthcare's 17 analysts are forecasting 2025 revenues to be US$21.0b, approximately in line with the last 12 months. Statutory earnings per share are forecast to plunge 66% to US$11.60 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$21.1b and earnings per share (EPS) of US$10.48 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the solid gain to earnings per share expectations following these results.

There's been no major changes to the consensus price target of US$172, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Tenet Healthcare, with the most bullish analyst valuing it at US$217 and the most bearish at US$134 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Tenet Healthcare's revenue growth is expected to slow, with the forecast 1.5% annualised growth rate until the end of 2025 being well below the historical 3.4% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.2% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Tenet Healthcare.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Tenet Healthcare's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Tenet Healthcare going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 3 warning signs for Tenet Healthcare (2 can't be ignored!) that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.