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Community Health's (CYH) Q4 Earnings Surpass, Improve Y/Y

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Community Health Systems, Inc. (CYH - Free Report) reported fourth-quarter 2020 adjusted net income of 96 cents per share, beating the Zacks Consensus Estimate of 18 cents by 433.3%. Moreover, the bottom line soared 140% year over year.

The company’s results benefited from lower expenses and solid revenues, partially offset by reduced patient volumes.

Quarterly Operational Update

In the fourth quarter, net operating revenues were $3.1 billion, trumping the Zacks Consensus Estimate by 1.3%. However, the top line dipped 5.1% year over year due to weak admissions.

The fourth quarter witnessed a decrease of 12.9% and 17.8% in admissions and adjusted admissions each from the respective year-ago numbers.

As of Dec 31, 2020, the number of licensed beds came in at 14110, down 13.1% from the prior-year quarter.

For the fourth quarter, the company delivered total adjusted EBITDA of $614 million, up 37.4% year over year.

Total operating costs and expenses of $2.7 billion were down 14% year over year owing to lower salaries and benefits, other operating expenses, depreciation and amortization. Also, interest expenses of $252 million slid 2.7% in the fourth quarter.

Financial Update

Total assets at fourth-quarter end were $16 billion, which inched up 2.5% from the level at 2019 end.

Cash and cash equivalents of $1.7 billion compared favorably with $216 million at 2019 end.

At the end of the fourth quarter, net cash provided by operating activities was $2.1 billion compared with net cash provided by operating activities of $385 million in the same period of 2019.

The company has a long-term debt of $12 billion as of Dec 31, 2020, down 9.7% from the level as of Dec 31, 2019.

2021 Guidance

Net operating revenues are expected in the range of $11.7-$12.5 billion.

Adjusted EBITDA is estimated in the band of $1.6-$1.8 billion. Interest expense is anticipated between $895 million and $905 million.

Net cash provided by operating activities is expected between $200 and $300 million. Capex is expected between $400 to $500 million.

Full-Year Update

For 2020, revenues came at $11.8 billion, down 10.8% from the 2019 level. Net income attributable to the company came in at $4.39 against net loss of $5.93 per share in 2019. Adjusted EBITDA for 2020 was $1.8 billion, up 11.1% year over year.

Zacks Rank

Community Health carries a Zacks Rank #3 (Hold), currently. 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 fourth-quarter results so far, the bottom-line results of Tenet Healthcare Corporation (THC - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Centene Corp. (CNC - Free Report) beat the respective Zacks Consensus Estimate.

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