Tenet Healthcare Raises 2025 EBITDA Guidance to Upper Range
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Should l Buy THC?
Source: seekingalpha
- EBITDA Guidance Raised: Tenet Healthcare expects its adjusted EBITDA for 2025 to reach the upper end of its guidance range at $4.47B to $4.57B, reflecting strong same-store revenue growth and disciplined expense management, showcasing the effectiveness of its strategic execution.
- Transaction Completion: Tenet announced the completion of a transaction with CommonSpirit Health to regain full ownership of Conifer Health Solutions, which includes approximately $1.9B in installment payments from CommonSpirit, expected to significantly improve the company's financial structure.
- Financial Impact: This transaction will reduce Tenet's redeemable non-controlling interest and other liabilities by approximately $885M while increasing additional paid-in capital by about $305M, further enhancing the company's financial flexibility and capital structure.
- Future Earnings Outlook: As a result of the equity transfer effective January 1, 2026, Tenet anticipates additional earnings, which will further solidify its market position in the healthcare sector and lay the groundwork for future growth.
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Analyst Views on THC
Wall Street analysts forecast THC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for THC is 241.36 USD with a low forecast of 224.00 USD and a high forecast of 260.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
15 Buy
0 Hold
0 Sell
Strong Buy
Current: 195.970
Low
224.00
Averages
241.36
High
260.00
Current: 195.970
Low
224.00
Averages
241.36
High
260.00
About THC
Tenet Healthcare Corporation is a diversified healthcare services company. The Company's segments include Hospital Operations and Services (Hospital Operations) and Ambulatory Care. The Hospital Operations segment is comprised of its acute care and specialty hospitals, a network of employed physicians and ancillary outpatient facilities. The Company's subsidiaries operate approximately 49 hospitals serving primarily urban and suburban communities in eight states. The Hospital Operations segment also includes around 135 outpatient facilities, including urgent care centers, imaging centers, off-campus hospital emergency departments and micro hospitals. It also provides revenue cycle management and value based care services. The Ambulatory Care segment, through its USPI Holding Company, Inc. subsidiary, holds ownership interests in approximately 518 ambulatory surgery centers, and 25 surgical hospitals in 37 states. The Company operates a Global Business Center in the Philippines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Tenet Healthcare Raises 2025 EBITDA Guidance to Upper Range
- EBITDA Guidance Raised: Tenet Healthcare expects its adjusted EBITDA for 2025 to reach the upper end of its guidance range at $4.47B to $4.57B, reflecting strong same-store revenue growth and disciplined expense management, showcasing the effectiveness of its strategic execution.
- Transaction Completion: Tenet announced the completion of a transaction with CommonSpirit Health to regain full ownership of Conifer Health Solutions, which includes approximately $1.9B in installment payments from CommonSpirit, expected to significantly improve the company's financial structure.
- Financial Impact: This transaction will reduce Tenet's redeemable non-controlling interest and other liabilities by approximately $885M while increasing additional paid-in capital by about $305M, further enhancing the company's financial flexibility and capital structure.
- Future Earnings Outlook: As a result of the equity transfer effective January 1, 2026, Tenet anticipates additional earnings, which will further solidify its market position in the healthcare sector and lay the groundwork for future growth.
See More
BofA Cautious on Hospitals, Forecasts 2-4% EBITDA Headwind Over Next 5 Years
- Dismal Industry Outlook: BofA Securities forecasts a 2-4% annual EBITDA headwind for hospitals over the next five years due to cuts from the Reconciliation Bill and the expiration of enhanced exchange subsidies, negatively impacting revenue and margins.
- Increased Policy Risks: Analysts note that while some new state-directed payment programs may be approved, future policy changes could further suppress hospital profitability, particularly concerning Medicaid and exchange policies.
- Intensified Market Competition: With healthcare demand stabilizing, core demand for hospital services is expected to grow below the midpoint of long-term ranges in 2026, as policy changes may lead to lower-than-expected volume growth for hospitals.
- Shift in Investment Preferences: BofA favors post-acute care companies like Encompass Health due to their minimal exposure to upcoming cuts, anticipating higher visibility growth, which reflects a positive outlook on favorable industry dynamics.
See More
Tenet Healthcare (THC) Projects 17.73% EPS Growth in Upcoming Earnings
- Stock Performance: Tenet Healthcare's shares closed at $200.60, rising 1.43% from the previous session, outperforming the S&P 500's slight decline of 0.03%, indicating market confidence in its short-term performance.
- Earnings Expectations: The upcoming earnings report is projected to show earnings per share (EPS) of $4.05, reflecting a 17.73% increase from the same quarter last year, suggesting an improvement in profitability that may attract more investor interest.
- Revenue Forecast: The Zacks Consensus Estimate anticipates net sales of $5.45 billion for Tenet Healthcare, representing a 7.44% year-over-year growth, highlighting the company's robust growth trajectory within the healthcare sector.
- Valuation Analysis: Tenet Healthcare currently trades at a forward P/E ratio of 12.25, significantly above the industry average of 8.73, indicating high market expectations for future growth, while its PEG ratio of 0.86 suggests a relatively reasonable growth outlook.
See More
Tenet Healthcare (THC): Reassessing Valuation Following a Robust Multi-Year Surge in Share Price
Tenet Healthcare's Performance: Tenet Healthcare has shown strong performance in the healthcare sector, with a year-to-date share price increase of approximately 57% and a three-year total shareholder return exceeding 320%, indicating positive investor sentiment.
Valuation Insights: The stock is currently trading at a price-to-earnings ratio of 12.7, significantly lower than the peer average of 23.9, suggesting it may be undervalued and has potential for valuation expansion if market sentiment improves.
DCF Model Valuation: A discounted cash flow (DCF) analysis estimates Tenet's fair value at around $370.12, indicating a potential upside of 47% from its current price, highlighting concerns about reimbursement pressures and execution risks that may limit growth.
Investment Opportunities: Investors are encouraged to explore other undervalued stocks and opportunities in the healthcare sector, as well as to consider Tenet's key rewards and risks before making investment decisions.
See More
Ryder Appoints Tammy Romo to Board Effective January 5, 2026
- New Board Member: Ryder System, Inc. announces the appointment of 63-year-old Tammy Romo to its board, effective January 5, 2026, aiming to enhance board leadership through her strategic oversight capabilities in complex public company settings.
- Financial Expertise: Romo served as CFO of Southwest Airlines for over a decade, overseeing all corporate financial functions, and her extensive experience in financial management and governance is expected to add value and enhance Ryder's competitiveness in the transportation sector.
- Governance Experience: Since 2015, Romo has also been an independent director at Tenet Healthcare Corporation, further underscoring her expertise in corporate governance, which will assist Ryder in navigating future strategic challenges more effectively.
- Strategic Significance: By bringing in an industry expert like Romo, Ryder demonstrates its commitment to enhancing board diversity and expertise, which is anticipated to drive the company's continued growth in the rapidly evolving logistics and transportation market.
See More
HCA Healthcare and Tenet Decline Following GOP Plan to Reduce Medicare Hospital Funding
Healthcare Stocks Decline: HCA Healthcare, Tenet Healthcare, and Universal Health Services saw their stock prices drop following reports of potential Medicare payment cuts for hospitals as part of a Republican healthcare reform plan.
Proposed Medicare Changes: The proposal suggests that Medicare would reimburse healthcare providers equally for services, regardless of whether they are delivered in a hospital or an office, which hospitals argue is unfair due to their higher overhead costs.
See More
Tenet Healthcare Raises 2025 EBITDA Guidance to Upper Range
- EBITDA Guidance Raised: Tenet Healthcare expects its adjusted EBITDA for 2025 to reach the upper end of its guidance range at $4.47B to $4.57B, reflecting strong same-store revenue growth and disciplined expense management, showcasing the effectiveness of its strategic execution.
- Transaction Completion: Tenet announced the completion of a transaction with CommonSpirit Health to regain full ownership of Conifer Health Solutions, which includes approximately $1.9B in installment payments from CommonSpirit, expected to significantly improve the company's financial structure.
- Financial Impact: This transaction will reduce Tenet's redeemable non-controlling interest and other liabilities by approximately $885M while increasing additional paid-in capital by about $305M, further enhancing the company's financial flexibility and capital structure.
- Future Earnings Outlook: As a result of the equity transfer effective January 1, 2026, Tenet anticipates additional earnings, which will further solidify its market position in the healthcare sector and lay the groundwork for future growth.
See More
BofA Cautious on Hospitals, Forecasts 2-4% EBITDA Headwind Over Next 5 Years
- Dismal Industry Outlook: BofA Securities forecasts a 2-4% annual EBITDA headwind for hospitals over the next five years due to cuts from the Reconciliation Bill and the expiration of enhanced exchange subsidies, negatively impacting revenue and margins.
- Increased Policy Risks: Analysts note that while some new state-directed payment programs may be approved, future policy changes could further suppress hospital profitability, particularly concerning Medicaid and exchange policies.
- Intensified Market Competition: With healthcare demand stabilizing, core demand for hospital services is expected to grow below the midpoint of long-term ranges in 2026, as policy changes may lead to lower-than-expected volume growth for hospitals.
- Shift in Investment Preferences: BofA favors post-acute care companies like Encompass Health due to their minimal exposure to upcoming cuts, anticipating higher visibility growth, which reflects a positive outlook on favorable industry dynamics.
See More
Tenet Healthcare (THC) Projects 17.73% EPS Growth in Upcoming Earnings
- Stock Performance: Tenet Healthcare's shares closed at $200.60, rising 1.43% from the previous session, outperforming the S&P 500's slight decline of 0.03%, indicating market confidence in its short-term performance.
- Earnings Expectations: The upcoming earnings report is projected to show earnings per share (EPS) of $4.05, reflecting a 17.73% increase from the same quarter last year, suggesting an improvement in profitability that may attract more investor interest.
- Revenue Forecast: The Zacks Consensus Estimate anticipates net sales of $5.45 billion for Tenet Healthcare, representing a 7.44% year-over-year growth, highlighting the company's robust growth trajectory within the healthcare sector.
- Valuation Analysis: Tenet Healthcare currently trades at a forward P/E ratio of 12.25, significantly above the industry average of 8.73, indicating high market expectations for future growth, while its PEG ratio of 0.86 suggests a relatively reasonable growth outlook.
See More
Tenet Healthcare (THC): Reassessing Valuation Following a Robust Multi-Year Surge in Share Price
Tenet Healthcare's Performance: Tenet Healthcare has shown strong performance in the healthcare sector, with a year-to-date share price increase of approximately 57% and a three-year total shareholder return exceeding 320%, indicating positive investor sentiment.
Valuation Insights: The stock is currently trading at a price-to-earnings ratio of 12.7, significantly lower than the peer average of 23.9, suggesting it may be undervalued and has potential for valuation expansion if market sentiment improves.
DCF Model Valuation: A discounted cash flow (DCF) analysis estimates Tenet's fair value at around $370.12, indicating a potential upside of 47% from its current price, highlighting concerns about reimbursement pressures and execution risks that may limit growth.
Investment Opportunities: Investors are encouraged to explore other undervalued stocks and opportunities in the healthcare sector, as well as to consider Tenet's key rewards and risks before making investment decisions.
See More
Ryder Appoints Tammy Romo to Board Effective January 5, 2026
- New Board Member: Ryder System, Inc. announces the appointment of 63-year-old Tammy Romo to its board, effective January 5, 2026, aiming to enhance board leadership through her strategic oversight capabilities in complex public company settings.
- Financial Expertise: Romo served as CFO of Southwest Airlines for over a decade, overseeing all corporate financial functions, and her extensive experience in financial management and governance is expected to add value and enhance Ryder's competitiveness in the transportation sector.
- Governance Experience: Since 2015, Romo has also been an independent director at Tenet Healthcare Corporation, further underscoring her expertise in corporate governance, which will assist Ryder in navigating future strategic challenges more effectively.
- Strategic Significance: By bringing in an industry expert like Romo, Ryder demonstrates its commitment to enhancing board diversity and expertise, which is anticipated to drive the company's continued growth in the rapidly evolving logistics and transportation market.
See More
HCA Healthcare and Tenet Decline Following GOP Plan to Reduce Medicare Hospital Funding
Healthcare Stocks Decline: HCA Healthcare, Tenet Healthcare, and Universal Health Services saw their stock prices drop following reports of potential Medicare payment cuts for hospitals as part of a Republican healthcare reform plan.
Proposed Medicare Changes: The proposal suggests that Medicare would reimburse healthcare providers equally for services, regardless of whether they are delivered in a hospital or an office, which hospitals argue is unfair due to their higher overhead costs.
See More
