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Community Health (CYH) Q2 Earnings Beat, Hikes '21 EPS View
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Community Health Systems, Inc. (CYH - Free Report) reported second-quarter 2021 adjusted net income of 23 cents per share, which compares favorably with the Zacks Consensus Estimate of a breakeven. The bottom line declined to nearly four-fold on a year-over-year basis.
The company’s results gained momentum on the back of improved revenues and uptick in patient volumes. It benefited from the robust bounce back of non-COVID-19 patient volume as lesser number of COVID-19 cases were reported in the quarter under review. However, the quarterly result was partly offset by escalating operating costs.
Quarterly Operational Update
Net operating revenues of $3 billion climbed 19.4% year over year in the quarter under review attributable to increased admissions. The top line surpassed the consensus mark by 1.1%.
In the second quarter, admissions and adjusted admissions rose 4.8% and 15.7%, respectively, from the prior-year quarter.
As of Jun 30, 2021, number of licensed beds totaled 13,320, which dropped 14.4% year over year.
The company’s adjusted EBITDA of $453 million almost came in line with the prior-year quarter’s figure.
Total operating costs and expenses of $2.7 billion climbed 21.1% year over year mainly due to rise in supplies.
In the quarter under review, interest expense, net fell 15.8% year over year to $219 million.
Community Health Systems, Inc. Price, Consensus and EPS Surprise
Community Health exited the second quarter with cash and cash equivalents of $1.3 billion, which slumped 25.4% from the level at 2020 end.
Total assets as of Jun 30, 2021, were $15.5 billion, reflecting 3% fall from 2020-end level.
As of Jun 30, 2021, the company’s long-term debt totaled $11.9 billion, which declined 1.4% from 2020-end level.
For the six months ended Jun 30, 2021, net cash provided by operating activities of $280 million plunged to more than six-fold from the year-ago comparable period.
2021 Outlook Revised
This year, the company’s net operating revenues are now projected in the range of $11.9 billion to $12.3 billion compared with the prior guidance of $11.7-$12.5 billion.
Adjusted EBITDA is estimated to lie within $1.7-$1.8 billion compared with the previous forecast of $1.65-$1.80 billion.
Diluted net income per share is anticipated to be 60-80 cents in 2021, up from the prior outlook of 25-60 cents.
Net interest expense is expected to lie in the range of $880 million to $900 million, lower than the previous guidance of $895-$905 million.
Net cash provided by operating activities are forecast between $300 million and $400 million, up from the prior projection of $200-$300 million.
The guidance for this year’s capex remained unchanged with the prior outlook.
Of the medical sector players that reported second-quarter results so far, the bottom line of Humana Inc. (HUM - Free Report) , UnitedHealth Group Incorporated (UNH - Free Report) and Universal Health Services, Inc. (UHS - Free Report) beat the Zacks Consensus Estimate.
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Community Health (CYH) Q2 Earnings Beat, Hikes '21 EPS View
Community Health Systems, Inc. (CYH - Free Report) reported second-quarter 2021 adjusted net income of 23 cents per share, which compares favorably with the Zacks Consensus Estimate of a breakeven. The bottom line declined to nearly four-fold on a year-over-year basis.
The company’s results gained momentum on the back of improved revenues and uptick in patient volumes. It benefited from the robust bounce back of non-COVID-19 patient volume as lesser number of COVID-19 cases were reported in the quarter under review. However, the quarterly result was partly offset by escalating operating costs.
Quarterly Operational Update
Net operating revenues of $3 billion climbed 19.4% year over year in the quarter under review attributable to increased admissions. The top line surpassed the consensus mark by 1.1%.
In the second quarter, admissions and adjusted admissions rose 4.8% and 15.7%, respectively, from the prior-year quarter.
As of Jun 30, 2021, number of licensed beds totaled 13,320, which dropped 14.4% year over year.
The company’s adjusted EBITDA of $453 million almost came in line with the prior-year quarter’s figure.
Total operating costs and expenses of $2.7 billion climbed 21.1% year over year mainly due to rise in supplies.
In the quarter under review, interest expense, net fell 15.8% year over year to $219 million.
Community Health Systems, Inc. Price, Consensus and EPS Surprise
Community Health Systems, Inc. price-consensus-eps-surprise-chart | Community Health Systems, Inc. Quote
Financial Update
Community Health exited the second quarter with cash and cash equivalents of $1.3 billion, which slumped 25.4% from the level at 2020 end.
Total assets as of Jun 30, 2021, were $15.5 billion, reflecting 3% fall from 2020-end level.
As of Jun 30, 2021, the company’s long-term debt totaled $11.9 billion, which declined 1.4% from 2020-end level.
For the six months ended Jun 30, 2021, net cash provided by operating activities of $280 million plunged to more than six-fold from the year-ago comparable period.
2021 Outlook Revised
This year, the company’s net operating revenues are now projected in the range of $11.9 billion to $12.3 billion compared with the prior guidance of $11.7-$12.5 billion.
Adjusted EBITDA is estimated to lie within $1.7-$1.8 billion compared with the previous forecast of $1.65-$1.80 billion.
Diluted net income per share is anticipated to be 60-80 cents in 2021, up from the prior outlook of 25-60 cents.
Net interest expense is expected to lie in the range of $880 million to $900 million, lower than the previous guidance of $895-$905 million.
Net cash provided by operating activities are forecast between $300 million and $400 million, up from the prior projection of $200-$300 million.
The guidance for this year’s capex remained unchanged with 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 second-quarter results so far, the bottom line of Humana Inc. (HUM - Free Report) , UnitedHealth Group Incorporated (UNH - Free Report) and Universal Health Services, Inc. (UHS - Free Report) beat the Zacks Consensus Estimate.