On July 24, Tenet Healthcare surged 17.97% in regular trading, trading at $239.175/share, with turnover of $16.63 million. The rally was driven by the company's Q2 earnings report released before market open, which significantly exceeded Wall Street expectations.
Tenet reported Q2 adjusted EPS of $6.12, beating the consensus estimate of $4.23 by 44.68% and representing a 52.24% year-over-year increase from $4.02. Revenue rose to $5.628 billion from $5.27 billion a year earlier, surpassing the $5.43 billion estimate. The company simultaneously raised its full-year guidance, now expecting adjusted diluted EPS of $20.30 to $21.69 on revenue of $21.9 billion to $22.5 billion, well above the prior analyst consensus of $17.94 in EPS. The results also alleviated earlier market concerns over an estimated $250 million EBITDA headwind from the expiration of enhanced exchange premium tax credits. Following the report, Bank of America raised its price target on the stock to $265 from $230.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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