Tenet Healthcare THC will be releasing its next round of earnings this Wednesday, July 21. For all of the relevant information, here is your guide for Wednesday's Q2 earnings announcement.
Net Income, Earnings, And Earnings Per Share
Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Analysts covering Tenet Healthcare modeled for quarterly EPS of $1.07 on revenue of $4.78 billion. Tenet Healthcare reported a per-share profit of $1.26 when it published results during the same quarter last year. Sales in that period totaled $3.65 billion.
Why Analyst Estimates And Earnings Surprises Are Important
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
If the company were to match the consensus estimate when it reports Wednesday, EPS would have fallen 15.08%. Revenue would be up 31.03% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.72 | 1.70 | 0.31 | -0.71 |
| EPS Actual | 1.30 | 4.72 | 0.64 | 1.26 |
| Revenue Estimate | 4.77 B | 4.89 B | 4.40 B | 3.76 B |
| Revenue Actual | 4.78 B | 4.92 B | 4.56 B | 3.65 B |
Stock Performance
Over the last 52-week period, shares are up 179.16%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.
Do not be surprised to see the stock move on comments made during its conference call. Tenet Healthcare is scheduled to hold the call at 10:00:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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