This healthcare stock is down 30% on Friday: explained here

Tenet Healthcare Corp (NYSE: THC) crashed a 52-week low on Friday after reporting a weak Q3 and lowering its outlook for the full financial year.

Tenet to buyback shares

On the plus side, the healthcare services company announced a $1.0 billion share repurchase programme. In the earnings press release, CEO Saum Sutaria said:

But investors seem to have discounted that authorisation.

The sell-off, though, might have created an attractive opportunity to invest in this stock considering the Wall Street has a consensus “buy” rating on it. The average price target on Tenet Healthcare Corp is $92 that represents more than a 100% upside from here.

Tenet Healthcare Q3 results

• Earned $131 million versus the year-ago $449 million
• Per-share earnings fell sharply from $4.13 to $1.16
• On an adjusted basis, earned $1.44 per share
• Revenue slid 2.0% year-on-year to $4.80 billion
• Consensus was $1.24 a share on $4.81 billion revenue

Tenet Healthcare future outlook

For the full year, Tenet now forecasts $5.88 to $6.42 of adjusted EPS on $19 billion to $19.2 billion in revenue. In comparisons, analysts had called for $6.38 a share and $19.27 billion of revenue.

Its Q4 guidance was also below the Street expectations. CEO Sutaria also said: