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Community Health's (CYH) Q3 Earnings Beat, Improve Y/Y
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Community Health Systems, Inc. (CYH - Free Report) reported third-quarter 2021 adjusted net income of 69 cents per share, beating the Zacks Consensus Estimate of 5 cents. The bottom line increased by 283.3% on a year-over-year basis.
Quarterly Operational Update
Net operating revenues of $3.1 billion dipped 0.4% year over year in the quarter under review. The top line surpassed the consensus mark by 2.7%.
In the third quarter, admissions and adjusted admissions dipped 5.5% and 3.4%, respectively, from the prior-year quarter’s figures.
As of Sep 30, 2021, number of licensed beds totaled 13,000, up 0.1% year over year.
The company’s adjusted EBITDA of $482 million was up 11.8% from the prior-year quarter’s figure.
Total operating costs and expenses of $2.7 billion dipped 2.3% year over year owing to lower salaries and benefits and lower operating expenses.
In the quarter under review, interest expense, net fell 15.9% year over year to $216 million.
Financial Update
Community Health exited the third quarter with cash and cash equivalents of $1.3 billion, which decreased 22.8% from the level at 2020 end.
Total assets as of Sep 30, 2021 were $15.7 billion, down 2.1% from the 2020-end level.
As of Sep 30, 2021, the company’s long-term debt totaled $11.9 billion, which declined 0.9% from the 2020-end level.
For the nine months ended Sep 30, 2021, net cash provided by operating activities of $400 million plunged from the year-ago comparable period’s figure of $2.1 billion.
2021 Outlook
This year, the company’s net operating revenues are now revised to the range of $12.1-$12.3 billion compared with the prior guidance of $11.9-$12.3 billion.
Adjusted EBITDA is estimated within $1.7-$1.8 billion.
Net income per share is anticipated to be $1-$1.20 per share, up from the prior outlook of 60-80 cents in 2021.
Net cash provided by operating activities excluding the repayment of Medicare accelerated payments is
forecast between $800 million and $900 million.
Capex is expected in the range of $450-$500 million.
Among other players from the medical space that have reported third- quarter earnings so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) beat respective estimates.
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Community Health's (CYH) Q3 Earnings Beat, Improve Y/Y
Community Health Systems, Inc. (CYH - Free Report) reported third-quarter 2021 adjusted net income of 69 cents per share, beating the Zacks Consensus Estimate of 5 cents. The bottom line increased by 283.3% on a year-over-year basis.
Quarterly Operational Update
Net operating revenues of $3.1 billion dipped 0.4% year over year in the quarter under review. The top line surpassed the consensus mark by 2.7%.
In the third quarter, admissions and adjusted admissions dipped 5.5% and 3.4%, respectively, from the prior-year quarter’s figures.
As of Sep 30, 2021, number of licensed beds totaled 13,000, up 0.1% year over year.
The company’s adjusted EBITDA of $482 million was up 11.8% from the prior-year quarter’s figure.
Total operating costs and expenses of $2.7 billion dipped 2.3% year over year owing to lower salaries and benefits and lower operating expenses.
In the quarter under review, interest expense, net fell 15.9% year over year to $216 million.
Financial Update
Community Health exited the third quarter with cash and cash equivalents of $1.3 billion, which decreased 22.8% from the level at 2020 end.
Total assets as of Sep 30, 2021 were $15.7 billion, down 2.1% from the 2020-end level.
As of Sep 30, 2021, the company’s long-term debt totaled $11.9 billion, which declined 0.9% from the 2020-end level.
For the nine months ended Sep 30, 2021, net cash provided by operating activities of $400 million plunged from the year-ago comparable period’s figure of $2.1 billion.
2021 Outlook
This year, the company’s net operating revenues are now revised to the range of $12.1-$12.3 billion compared with the prior guidance of $11.9-$12.3 billion.
Adjusted EBITDA is estimated within $1.7-$1.8 billion.
Net income per share is anticipated to be $1-$1.20 per share, up from the prior outlook of 60-80 cents in 2021.
Net cash provided by operating activities excluding the repayment of Medicare accelerated payments is
forecast between $800 million and $900 million.
Capex is expected in the range of $450-$500 million.
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
Among other players from the medical space that have reported third-
quarter earnings so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) beat respective estimates.