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Community Health (CYH) Q1 Earnings Beat, Trims '22 EPS View
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Community Health Systems, Inc. (CYH - Free Report) reported first-quarter 2022 adjusted net income of 14 cents share, which outpaced the Zacks Consensus Estimate by 7.7% but declined 61.1% year over year.
Concurrent with first-quarter results, management trimmed its 2022 guidance for net income per share. The metric is expected between 75 cents and $1.30 per share, lower than the prior guidance of $1-$1.50 per share. The mid-point of the revised guidance indicates 58.2% plunge from the 2021 figure. These factors might have led to a decline of 4.9% in Community Health’s shares on Apr 28.
Nevertheless, the quarterly results of CYH were aided by higher revenues and uptick in adjusted admissions. However, increasing incidence of COVID-19 cases had adversely impacted the net operating revenues, labor expense and length of stay in the quarter under review.
Community Health Systems, Inc. Price, Consensus and EPS Surprise
Net operating revenues amounted to $3.1 billion, which rose 3.3% year over year in the first quarter, driven by higher adjusted admissions. Yet, the top line missed the consensus mark by 1.6%.
Admissions slipped 1.7% year over year, while adjusted admissions grew 2.2% year over year in the quarter under review. On a same-store basis, admissions dipped 0.3% year over year but adjusted admissions improved 3.2% from the prior-year quarter’s reported figure.
Community Health had licensed beds of 13,289 as of Mar 31, 2022, which declined 2% year over year.
Adjusted EBITDA decreased 17.4% year over year to $409 million in the first quarter.
Total operating costs and expenses were $2.8 billion, which escalated 5.7% year over year primarily due to other operating expenses.
Meanwhile, CYH’s interest expense, net, decreased 6.1% year over year to $217 million.
Financial Update (as of Mar 31, 2022)
Community Health exited the first quarter with cash and cash equivalents of $460 million, down 9.3% from 2021-end figure.
Total assets inched up 0.3% from 2021-end to $15.3 billion.
Long-term debt amounted to $12.2 billion, which inched up 0.4% from the level at 2021 end.
Net cash provided by operating activities remained unchanged year over year level at $101 million in the first quarter.
2022 Outlook in Details
Concurrent with first-quarter results, Community Health altered its guidance for some metrics and the one for net income per share has already been mentioned above.
Adjusted EBITDA is projected within $1.775-$1.925 billion compared with the previous outlook of $1.825-$1.975 billion. The mid-point of the revised outlook suggests 6% decline from the 2021 figure.
Net cash provided by operating activities is anticipated to lie between $900 million and $1.05 billion for 2022, lower than the prior outlook of $950 million and $1.1 billion.
Meanwhile, the guidance for net operating revenues in the range of $12.6-$13.1 billion remains unchanged.
Capex is continued to be estimated within $500-$600 million. Labor costs are expected to remain high in the remaining part of the year.
Zacks Rank
Community Health currently has a Zacks Rank #5 (Strong Sell).
Of the Medical sector players that have reported first-quarter results so far, the bottom line of Centene Corporation (CNC - Free Report) , Humana Inc. (HUM - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) beat the Zacks Consensus Estimate.
Centene reported first-quarter 2022 adjusted earnings per share of $1.83, which surpassed the Zacks Consensus Estimate by 8.9%. The bottom line improved 12.3% year over year. Total revenues of Centene rose 24% year over year to $37.2 billion in the first quarter. The top line beat the consensus mark by 7.2%. Managed care membership of CNC grew 8% year over year to 26.2 million as of Mar 31, 2022.
Humana reported first-quarter 2022 adjusted earnings per share of $8.04, which surpassed the Zacks Consensus Estimate of $6.83. The bottom line improved from the year-ago figure of $7.67 per share. Humana’s revenues of $23,970 million were up from $20,668 million in the prior-year quarter. The top line beat the Zacks Consensus Estimate of $23,550 million. While revenues from premiums and services increased 12.8% and 171.2% year over year, respectively, investment income declined 96.2% for HUM.
Molina Healthcare reported first-quarter 2022 adjusted earnings of $4.90 per share, beating the Zacks Consensus Estimate of $4.74. Further, the bottom line increased from the year-ago earnings of $4.44 per share. Total revenues of $7,770 million beat the consensus mark of $7,538 million. The top line surged from the year-ago level of $6,522 million. Premium revenues for MOH increased to $7,531 million from $6,306 million a year ago.
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Community Health (CYH) Q1 Earnings Beat, Trims '22 EPS View
Community Health Systems, Inc. (CYH - Free Report) reported first-quarter 2022 adjusted net income of 14 cents share, which outpaced the Zacks Consensus Estimate by 7.7% but declined 61.1% year over year.
Concurrent with first-quarter results, management trimmed its 2022 guidance for net income per share. The metric is expected between 75 cents and $1.30 per share, lower than the prior guidance of $1-$1.50 per share. The mid-point of the revised guidance indicates 58.2% plunge from the 2021 figure. These factors might have led to a decline of 4.9% in Community Health’s shares on Apr 28.
Nevertheless, the quarterly results of CYH were aided by higher revenues and uptick in adjusted admissions. However, increasing incidence of COVID-19 cases had adversely impacted the net operating revenues, labor expense and length of stay in the quarter under review.
Community Health Systems, Inc. Price, Consensus and EPS Surprise
Community Health Systems, Inc. price-consensus-eps-surprise-chart | Community Health Systems, Inc. Quote
Quarterly Operational Update
Net operating revenues amounted to $3.1 billion, which rose 3.3% year over year in the first quarter, driven by higher adjusted admissions. Yet, the top line missed the consensus mark by 1.6%.
Admissions slipped 1.7% year over year, while adjusted admissions grew 2.2% year over year in the quarter under review. On a same-store basis, admissions dipped 0.3% year over year but adjusted admissions improved 3.2% from the prior-year quarter’s reported figure.
Community Health had licensed beds of 13,289 as of Mar 31, 2022, which declined 2% year over year.
Adjusted EBITDA decreased 17.4% year over year to $409 million in the first quarter.
Total operating costs and expenses were $2.8 billion, which escalated 5.7% year over year primarily due to other operating expenses.
Meanwhile, CYH’s interest expense, net, decreased 6.1% year over year to $217 million.
Financial Update (as of Mar 31, 2022)
Community Health exited the first quarter with cash and cash equivalents of $460 million, down 9.3% from 2021-end figure.
Total assets inched up 0.3% from 2021-end to $15.3 billion.
Long-term debt amounted to $12.2 billion, which inched up 0.4% from the level at 2021 end.
Net cash provided by operating activities remained unchanged year over year level at $101 million in the first quarter.
2022 Outlook in Details
Concurrent with first-quarter results, Community Health altered its guidance for some metrics and the one for net income per share has already been mentioned above.
Adjusted EBITDA is projected within $1.775-$1.925 billion compared with the previous outlook of $1.825-$1.975 billion. The mid-point of the revised outlook suggests 6% decline from the 2021 figure.
Net cash provided by operating activities is anticipated to lie between $900 million and $1.05 billion for 2022, lower than the prior outlook of $950 million and $1.1 billion.
Meanwhile, the guidance for net operating revenues in the range of $12.6-$13.1 billion remains unchanged.
Capex is continued to be estimated within $500-$600 million. Labor costs are expected to remain high in the remaining part of the year.
Zacks Rank
Community Health currently has a Zacks Rank #5 (Strong Sell).
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 first-quarter results so far, the bottom line of Centene Corporation (CNC - Free Report) , Humana Inc. (HUM - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) beat the Zacks Consensus Estimate.
Centene reported first-quarter 2022 adjusted earnings per share of $1.83, which surpassed the Zacks Consensus Estimate by 8.9%. The bottom line improved 12.3% year over year. Total revenues of Centene rose 24% year over year to $37.2 billion in the first quarter. The top line beat the consensus mark by 7.2%. Managed care membership of CNC grew 8% year over year to 26.2 million as of Mar 31, 2022.
Humana reported first-quarter 2022 adjusted earnings per share of $8.04, which surpassed the Zacks Consensus Estimate of $6.83. The bottom line improved from the year-ago figure of $7.67 per share. Humana’s revenues of $23,970 million were up from $20,668 million in the prior-year quarter. The top line beat the Zacks Consensus Estimate of $23,550 million. While revenues from premiums and services increased 12.8% and 171.2% year over year, respectively, investment income declined 96.2% for HUM.
Molina Healthcare reported first-quarter 2022 adjusted earnings of $4.90 per share, beating the Zacks Consensus Estimate of $4.74. Further, the bottom line increased from the year-ago earnings of $4.44 per share. Total revenues of $7,770 million beat the consensus mark of $7,538 million. The top line surged from the year-ago level of $6,522 million. Premium revenues for MOH increased to $7,531 million from $6,306 million a year ago.