Compared to Estimates, Tenet (THC) Q1 Earnings: A Look at Key Metrics

Tenet Healthcare (THC) reported $5.02 billion in revenue for the quarter ended March 2023, representing a year-over-year increase of 5.8%. EPS of $1.42 for the same period compares to $1.93 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $4.83 billion, representing a surprise of +4.03%. The company delivered an EPS surprise of +22.41%, with the consensus EPS estimate being $1.16.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Tenet performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Net operating revenues- Hospital Operations and other: $3.90 billion versus $3.80 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +2.7% change.

• Net Operating revenues- Total Conifer revenues: $324 million versus the three-analyst average estimate of $321.03 million.

• Net operating revenues- Ambulatory Care: $905 million versus $829.36 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +22.6% change.

• Net operating revenues- Inter-segment eliminations: -$107 million versus the three-analyst average estimate of -$112.08 million.

• Adjusted EBITDA- Hospital Operations and other: $405 million compared to the $361.69 million average estimate based on three analysts.

• Adjusted EBITDA- Conifer: $87 million versus the three-analyst average estimate of $76.18 million.

• Adjusted EBITDA- Ambulatory Care: $340 million versus $285.24 million estimated by three analysts on average.

View all Key Company Metrics for Tenet here>>>

Shares of Tenet have returned +25.1% over the past month versus the Zacks S&P 500 composite's +4.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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