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Community Health (CYH) Q1 Earnings & Revenues Top Estimates

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Community Health Systems, Inc. (CYH - Free Report) delivered first-quarter 2021 adjusted net income of 36 cents per share, which compares favorably with the Zacks Consensus Estimate of a loss of 17 cents. Notably, the company had reported a net loss of $1.59 per share in the prior-year quarter.

The company’s results gained momentum from reduced costs, partly offset by lower revenues and decline in patient volumes.

Quarterly Operational Update

In the first quarter, net operating revenues dipped 0.4% year over year to $3 billion primarily due to softer admissions. However, the top line outpaced the Zacks Consensus Estimate by 1.4%.

The first quarter saw a decline of 14% and 15.8% in admissions and adjusted admissions, respectively, from the year-ago quarter’s figures.

As of Mar 31, 2021, the number of licensed beds totaled 13,563, which slumped 13.2% from the prior-year quarter.

Community Health’s adjusted EBITDA surged 60.2% year over year to $495 million in the first quarter, courtesy of the company receiving payments via the Public Health and Social Services Emergency Fund (the “PHSSEF”) as well as state and local pandemic relief programs.

Total operating costs and expenses fell 7.8% to $2.7 billion, thanks to decline in salaries and benefits, supplies, lease cost and rent, and depreciation and amortization.

Further, interest expense, net of $231 million slipped 11.8% year over year in the first quarter.

Financial Update

As of Mar 31, 2021, total assets were $15.6 billion, down 2.6% from 2020-end level.

At the end of the first quarter, cash and cash equivalents of $1.3 billion plunged 25.4% from the level as of Dec 31, 2020.

As of Mar 31, 2021, the company had long-term debt of $11.9 billion, which slid 1.6% from 2020-end level.

During the first quarter, net cash provided by operating activities amounted to $101 million, which nearly doubled on a year-over-year basis.

2021 Guidance Updated

The guidance for net operating revenues of the company remained unchanged in the range of $11.7 billion to $12.5 billion in 2021.

This year, adjusted EBITDA is anticipated to be $1.7-$1.8 billion, higher than the previous guidance of $1.6-$1.8 billion.

Diluted net income per share is projected to be between 25 cents and 60 cents in 2021.

However, the guidance for this year’s interest expense, net cash provided by operating activities and capex remain unchanged from the prior outlook.

Zacks Rank

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.

Other Medical Sector Releases

Of the medical sector players that reported first-quarter results so far, the bottom line of Humana Inc. (HUM - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Universal Health Services, Inc. (UHS - Free Report) beat the Zacks Consensus Estimate.

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