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Community Health Systems (CYH) Q1 Earnings Beat Estimates

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Community Health Systems, Inc. (CYH - Free Report) reported adjusted earnings of 8 cents per share in the first quarter of 2017, which beat the Zacks Consensus Estimate of 6 cents by 33%.

 

 

The company had incurred a loss of $1.79 per share in the first quarter, wider than a loss of 10 cents in the year-ago quarter.

Quarterly Operational Update:

In the first quarter, net operating revenue of $4.5 billion surpassed the Zacks Consensus Estimate by 3.3% but decreased 10.3% year over year.

Total admissions of 2.1 billion decreased 11.5% and adjusted admissions of 4.5 billion declined 12.5%, both on a year-over-year basis. On a same-store basis, admissions dipped 1.5% and adjusted admissions were down 1.4%, both on a year-over-year basis.

In the reported quarter, total operating expense declined 6.2% to $4.4 billion, primarily due to lower salaries and benefits paid to employees, depreciation & amortization-related expenses and other operating costs.

Financial Update:

As of Mar 31, 2017, the company’s total assets declined 13% year over year to $21.7 billion. Cash and cash equivalent grew 38% year over year to $247 million.

The company paid off a substantial portion of its debt through divestures. It now has a long-term debt of $14.7 billion as of Mar 31, 2017, down 0.7% year over year.

Total shareholders’ equity was $1.43 billion as of Mar 31, 2017, down 11.5% from year-end 2016.

Cash flow from operations was $242 million at the end of the first quarter, down 17.7% year over year from $294 million.

2017 Guidance

Community Health expects net operating revenue (less provision for bad debts) in the range of $15.8 billion to $16.2 billion.

The company projects adjusted EBITDA for 2017 in the range of $2–$2.175 billion.

Weighted-average diluted shares is expected the band of $112–$113 million.

Community Health Systems, Inc. Price, Consensus and EPS Surprise

 

Zacks Rank and Performance of Other Insurers

Community Health presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among the other firms in the medical sector that have reported first-quarter earnings so far, the bottom line at Centene Corp. (CNC - Free Report) , Quest Diagnostics Incorporated (DGX - Free Report) and UnitedHealth Group Inc. (UNH - Free Report) beat their respective Zacks Consensus Estimate.

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