Community Health Systems, Inc. (CYH - Free Report) reported second-quarter 2020 adjusted net income of 85 cents per share against the Zacks Consensus Estimate of a loss of $1.22 per share. Notably, the company had reported a loss of 47 cents per share in the prior-year quarter.
The company’s results benefited from lower operating costs, partially offset by reduced patient volumes.
Quarterly Operational Update
In the second quarter, net operating revenues were $2.5 billion, which missed the Zacks Consensus Estimate by 0.3%. Further, the top line plunged 23.7% year over year due to reduction in admissions. The company also witnessed lesser number of patient visits in April owing to the COVID-19 pandemic, which somewhat bounced back in May and June.
The second quarter witnessed a decrease of 23.6% and 29.2% in admissions and adjusted admissions, respectively, compared with year-ago numbers.
As of Jun 30, 2020, number of licensed beds came in at 15,562, which indicates a decline of 8.8% from the prior-year quarter.
For second-quarter 2020, the company delivered total adjusted EBITDA of $454 million, up 12.9% year over year.
Total operating costs and expenses of $2.2 billion were down 30.3% year over year due to lower salaries and benefits, supplies, other operating expenses, government and other legal settlements and related costs, and depreciation and amortization. Also, interest expenses of $260 million declined 1.9% in the second quarter.
Financial Update
Total assets at second-quarter end were $16.4 billion, which increased 5.2% from the level at 2019 end.
Cash and cash equivalents of $1.6 billion soared 618.5% from 2019 end.
In the first half of 2020, net cash provided by operating activities was $1.7 billion, which skyrocketed 545.3% from the first half of 2019.
The company has long-term debt of $13.1 billion as of Jun 30, 2020, down 2.1% from the level as of Dec 31, 2019.
Zacks Rank
Community Health carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the medical sector players that have reported second-quarter results so far, UnitedHealth Group Incorporated (UNH - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Universal Health Services, Inc. (UHS - Free Report) beat the Zacks Consensus Estimate for earnings.
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Community Health Systems, Inc. (CYH - Free Report) reported second-quarter 2020 adjusted net income of 85 cents per share against the Zacks Consensus Estimate of a loss of $1.22 per share. Notably, the company had reported a loss of 47 cents per share in the prior-year quarter.
The company’s results benefited from lower operating costs, partially offset by reduced patient volumes.
Quarterly Operational Update
In the second quarter, net operating revenues were $2.5 billion, which missed the Zacks Consensus Estimate by 0.3%. Further, the top line plunged 23.7% year over year due to reduction in admissions. The company also witnessed lesser number of patient visits in April owing to the COVID-19 pandemic, which somewhat bounced back in May and June.
The second quarter witnessed a decrease of 23.6% and 29.2% in admissions and adjusted admissions, respectively, compared with year-ago numbers.
As of Jun 30, 2020, number of licensed beds came in at 15,562, which indicates a decline of 8.8% from the prior-year quarter.
For second-quarter 2020, the company delivered total adjusted EBITDA of $454 million, up 12.9% year over year.
Total operating costs and expenses of $2.2 billion were down 30.3% year over year due to lower salaries and benefits, supplies, other operating expenses, government and other legal settlements and related costs, and depreciation and amortization. Also, interest expenses of $260 million declined 1.9% in the second quarter.
Financial Update
Total assets at second-quarter end were $16.4 billion, which increased 5.2% from the level at 2019 end.
Cash and cash equivalents of $1.6 billion soared 618.5% from 2019 end.
In the first half of 2020, net cash provided by operating activities was $1.7 billion, which skyrocketed 545.3% from the first half of 2019.
The company has long-term debt of $13.1 billion as of Jun 30, 2020, down 2.1% from the level as of Dec 31, 2019.
Zacks Rank
Community Health carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the medical sector players that have reported second-quarter results so far, UnitedHealth Group Incorporated (UNH - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Universal Health Services, Inc. (UHS - Free Report) beat the Zacks Consensus Estimate for earnings.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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