Community Health Systems, Inc. (CYH - Free Report) reported adjusted earnings of 46 cents per share in the fourth quarter of 2016, which crushed the Zacks Consensus Estimate of 12 cents by 283%. The company had incurred a loss of 28 cents per share in the year-ago quarter.
For the full year, the company reported adjusted earnings of 46 cents per share that plunged 80% year over year, primarily due to lower revenues.
Quarterly Operational Update:
For the fourth quarter, net operating revenue of $4.47 billion surpassed the Zacks Consensus Estimate by 1.4% but decreased 68% year over year. For 2016, revenues came in at $18.48 billion, down 5.13% year over year.
Total admissions of 203.5 billion fell 11.7%, while adjusted admissions of 440.6 billion declined 12.7%, both on a year-over-year basis. On a same-store basis, both admissions and adjusted admissions dipped 1.4% during the fourth quarter.
In the reported quarter, net inpatient revenue accounted for 43.6% of total patient revenue, up 60 basis points (bps) from the year-ago quarter. On the other hand, net outpatient revenue accounted for 56.4% of total patient revenue, down 60 bps year over year.
Financial Update:
As of Dec 31, 2016, the company’s total assets declined 18% year over year to $21.9 billion. Cash and cash equivalent grew 29.3% year over year to $238 million.
The company paid off a substantial portion of its debts through divestures. It now has a long-term debt of $14.8 billion as of Dec 31, 2016, down 10.8% year over year.
Total shareholders’ equity was $1.73 billion as of Dec 31, 2016, down from $4.1 billion at 2015 end.
Cash flow from operations was $327 million at the end of the fourth quarter, up 7% year over year from $306 million.
2017 Guidance
Community Health projects adjusted EBITDA for 2017 in the range of $2–$2.175 billion.
Capital expenditure is expected the band of $625–$775 million.
The company expects operating cash flow in the range of $1.050–$1.225 billion.
Zacks Rank and Performance of Other Insurers
Community Health currently 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 fourth-quarter earnings so far, the bottom line at Aetna Inc. , HCA Holdings Inc. (HCA - Free Report) and UnitedHealth Group Inc. (UNH - Free Report) beat their respective Zacks Consensus Estimate.
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Community Health Systems, Inc. (CYH - Free Report) reported adjusted earnings of 46 cents per share in the fourth quarter of 2016, which crushed the Zacks Consensus Estimate of 12 cents by 283%. The company had incurred a loss of 28 cents per share in the year-ago quarter.
For the full year, the company reported adjusted earnings of 46 cents per share that plunged 80% year over year, primarily due to lower revenues.
Quarterly Operational Update:
For the fourth quarter, net operating revenue of $4.47 billion surpassed the Zacks Consensus Estimate by 1.4% but decreased 68% year over year. For 2016, revenues came in at $18.48 billion, down 5.13% year over year.
Total admissions of 203.5 billion fell 11.7%, while adjusted admissions of 440.6 billion declined 12.7%, both on a year-over-year basis. On a same-store basis, both admissions and adjusted admissions dipped 1.4% during the fourth quarter.
In the reported quarter, net inpatient revenue accounted for 43.6% of total patient revenue, up 60 basis points (bps) from the year-ago quarter. On the other hand, net outpatient revenue accounted for 56.4% of total patient revenue, down 60 bps year over year.
Financial Update:
As of Dec 31, 2016, the company’s total assets declined 18% year over year to $21.9 billion. Cash and cash equivalent grew 29.3% year over year to $238 million.
The company paid off a substantial portion of its debts through divestures. It now has a long-term debt of $14.8 billion as of Dec 31, 2016, down 10.8% year over year.
Total shareholders’ equity was $1.73 billion as of Dec 31, 2016, down from $4.1 billion at 2015 end.
Cash flow from operations was $327 million at the end of the fourth quarter, up 7% year over year from $306 million.
2017 Guidance
Community Health projects adjusted EBITDA for 2017 in the range of $2–$2.175 billion.
Capital expenditure is expected the band of $625–$775 million.
The company expects operating cash flow in the range of $1.050–$1.225 billion.
Zacks Rank and Performance of Other Insurers
Community Health currently 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 fourth-quarter earnings so far, the bottom line at Aetna Inc. , HCA Holdings Inc. (HCA - Free Report) and UnitedHealth Group Inc. (UNH - Free Report) beat their respective Zacks Consensus Estimate.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research.See these stocks 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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