NEW YORK (TheStreet) -- Tenet Healthcare (THC - Get Report) shares are down 7.5% to $47.75 in trading on heavy volume Monday after the health care services company released its 2015 guidance before the opening bell today.

The Dallas, TX-based company said that it expects to generate full year revenue between $17.4 billion and $17.7 billion, with an adjusted EPS between $1.32 per share and $2.40 per share.

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Analysts on average are expecting the company to earn $2.69 per share on revenue of $17.4 billion, according to analysts polled by Thomson Reuters.

Tenet Healthcare is one of the health service providers that have benefited from the Affordable Care Act. In the five states that expanded medicaid eligibility under the healthcare law, the company saw a 63% drop in uninsured cases and a 21% increase in Medicaid admissions in the fourth quarter, according to the Wall Street Journal.

TheStreet Ratings team rates TENET HEALTHCARE CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate TENET HEALTHCARE CORP (THC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • THC's very impressive revenue growth greatly exceeded the industry average of 19.8%. Since the same quarter one year prior, revenues leaped by 73.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has slightly increased to $221.00 million or 7.28% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -20.26%.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The debt-to-equity ratio is very high at 15.72 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, THC maintains a poor quick ratio of 0.78, which illustrates the inability to avoid short-term cash problems.
  • The gross profit margin for TENET HEALTHCARE CORP is currently extremely low, coming in at 10.98%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.21% trails that of the industry average.
  • You can view the full analysis from the report here: THC Ratings Report
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