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Community Health Q2 Earnings Miss on Declining Patient Days
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Key Takeaways
CYH posted a Q2 adjusted loss of $0.05 per share, missing the consensus estimate of a $0.05 profit.
Net operating revenues dipped 0.2% to $3.1B due to higher occupancy and same-store admissions.
Patient days fell 9.4%, and adjusted admissions dropped 8.3% amid fewer licensed beds and divestitures.
Community Health Systems, Inc. (CYH - Free Report) incurred a second-quarter 2025 adjusted loss of 5 cents per share, which missed the Zacks Consensus Estimate of earnings of 5 cents. However, the bottom line narrowed from the prior-year loss of 17 cents per share.
Net operating revenues declined 0.2% year over year to $3.1 billion in the quarter under review. The top line beat the consensus mark by 3%.
The quarterly revenues were aided by an increased occupancy rate and same-store admissions. However, the upside was partially offset by a decrease in patient days and adjusted admissions.
Community Health Systems, Inc. Price, Consensus and EPS Surprise
At the second-quarter end, the hospital count for Community Health was 70, lower than the year-ago level of 78.
Patient days tumbled 9.4% year over year. The average length of stay decreased 2.3% year over year to 4.2 days, while the occupancy rate of 50.8% increased from 50% in the year-ago quarter.
Adjusted admissions declined 8.3% year over year in the quarter under review. On a same-store basis, adjusted admissions fell 0.7% from the corresponding prior-year quarter’s reported figure.
CYH licensed beds totaled 10,478 as of June 30, 2025, which indicates a decrease of 11.7% from the prior-year quarter. Also, the reported figure missed the consensus estimate and our estimate by 1.8%.
Total operating expenses declined 9.7% year over year to $2.6 billion in the second quarter, primarily due to low non-operating expenses, and came in below our estimate of $2.7 billion.
Meanwhile, net interest expenses of $214 million decreased 0.9% year over year. The metric came in higher than our estimate of $205.7 million.
The company reported a net income of $320 million in the second quarter, which increased significantly from $26 million in the year-ago period. Adjusted EBITDA declined 1.8% year over year to $380 million in the quarter under review, primarily due to a decrease in acuity and outpatient volumes and increased expenses for outsourced medical specialists. The metric came in above our estimate of $365.7 million.
During 2025, the company divested its ownership interests in several hospitals, including a 50% stake in two hospitals, an 80% stake in one hospital and full ownership of three other hospitals.
CYH’s Financial Update (As of June 30, 2025)
Community Health exited the second quarter with cash and cash equivalents of $456 million, which increased significantly from $37 million at 2024-end. Total assets of $13.6 billion decreased from $14.1 billion at 2024-end.
Long-term debt amounted to $10.8 billion, which fell from $11.4 billion at 2024-end. Current maturities of long-term debt were $23 million.
In the first half of 2025, CYH generated operating cash flows of $208 million, up from $197 million in the year-ago period.
CYH’s 2025 Guidance
The company anticipates net operating revenues between $12.3 billion and $12.6 billion for 2025 compared with the 2024 figure of $12.63 billion. Adjusted EBITDA is estimated to be in the range of $1.45-$1.55 billion compared with the 2024 level of $1.54 billion.
Net loss per share is expected to be between 40 cents and 10 cents in 2025.
Depreciation and amortization expenses are now predicted to be in the range of $425-$435 million for 2025.
Net cash from operating activities was estimated to be between $600 million and $700 million in 2025. Capital expenditures were anticipated in the range of $350-$400 million.
The Zacks Consensus Estimate for Encompass Health’s current-year earnings of $5.01 per share has witnessed one upward revision in the past seven days against no movement in the opposite direction. Encompass Health beat earnings estimates in each of the trailing four quarters, with the average surprise being 12.3%. The consensus estimate for current-year revenues is pegged at $5.9 billion, suggesting 9.5% year-over-year growth.
The Zacks Consensus Estimate for Fresenius Medical Care’s current-year earnings of $2.23 per share has witnessed four upward revisions in the past 60 days against no movement in the opposite direction. Fresenius Medical Care beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 6.6%. The consensus estimate for current-year revenues is pegged at $21.9 billion, suggesting 4.8% year-over-year growth.
The Zacks Consensus Estimate for Doximity’s current-year earnings of $1.46 per share has witnessed one upward revision in the past 60 days against no movement in the opposite direction. Doximity beat earnings estimates in each of the trailing four quarters, with an average surprise being 29.9%. The consensus estimate for current-year revenues is pegged at $625.7 million, suggesting 9.7% year-over-year growth.
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Community Health Q2 Earnings Miss on Declining Patient Days
Key Takeaways
Community Health Systems, Inc. (CYH - Free Report) incurred a second-quarter 2025 adjusted loss of 5 cents per share, which missed the Zacks Consensus Estimate of earnings of 5 cents. However, the bottom line narrowed from the prior-year loss of 17 cents per share.
Net operating revenues declined 0.2% year over year to $3.1 billion in the quarter under review. The top line beat the consensus mark by 3%.
The quarterly revenues were aided by an increased occupancy rate and same-store admissions. However, the upside was partially offset by a decrease in patient days and adjusted admissions.
Community Health Systems, Inc. Price, Consensus and EPS Surprise
Community Health Systems, Inc. price-consensus-eps-surprise-chart | Community Health Systems, Inc. Quote
CYH’s Q2 Operational Update
At the second-quarter end, the hospital count for Community Health was 70, lower than the year-ago level of 78.
Patient days tumbled 9.4% year over year. The average length of stay decreased 2.3% year over year to 4.2 days, while the occupancy rate of 50.8% increased from 50% in the year-ago quarter.
Adjusted admissions declined 8.3% year over year in the quarter under review. On a same-store basis, adjusted admissions fell 0.7% from the corresponding prior-year quarter’s reported figure.
CYH licensed beds totaled 10,478 as of June 30, 2025, which indicates a decrease of 11.7% from the prior-year quarter. Also, the reported figure missed the consensus estimate and our estimate by 1.8%.
Total operating expenses declined 9.7% year over year to $2.6 billion in the second quarter, primarily due to low non-operating expenses, and came in below our estimate of $2.7 billion.
Meanwhile, net interest expenses of $214 million decreased 0.9% year over year. The metric came in higher than our estimate of $205.7 million.
The company reported a net income of $320 million in the second quarter, which increased significantly from $26 million in the year-ago period. Adjusted EBITDA declined 1.8% year over year to $380 million in the quarter under review, primarily due to a decrease in acuity and outpatient volumes and increased expenses for outsourced medical specialists. The metric came in above our estimate of $365.7 million.
During 2025, the company divested its ownership interests in several hospitals, including a 50% stake in two hospitals, an 80% stake in one hospital and full ownership of three other hospitals.
CYH’s Financial Update (As of June 30, 2025)
Community Health exited the second quarter with cash and cash equivalents of $456 million, which increased significantly from $37 million at 2024-end. Total assets of $13.6 billion decreased from $14.1 billion at 2024-end.
Long-term debt amounted to $10.8 billion, which fell from $11.4 billion at 2024-end. Current maturities of long-term debt were $23 million.
In the first half of 2025, CYH generated operating cash flows of $208 million, up from $197 million in the year-ago period.
CYH’s 2025 Guidance
The company anticipates net operating revenues between $12.3 billion and $12.6 billion for 2025 compared with the 2024 figure of $12.63 billion. Adjusted EBITDA is estimated to be in the range of $1.45-$1.55 billion compared with the 2024 level of $1.54 billion.
Net loss per share is expected to be between 40 cents and 10 cents in 2025.
Depreciation and amortization expenses are now predicted to be in the range of $425-$435 million for 2025.
Net cash from operating activities was estimated to be between $600 million and $700 million in 2025. Capital expenditures were anticipated in the range of $350-$400 million.
CYH’s Zacks Rank & Other Key Picks
CYH currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Medical space are Encompass Health Corp (EHC - Free Report) , Fresenius Medical Care AG & Co. (FMS - Free Report) and Doximity, Inc. (DOCS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Encompass Health’s current-year earnings of $5.01 per share has witnessed one upward revision in the past seven days against no movement in the opposite direction. Encompass Health beat earnings estimates in each of the trailing four quarters, with the average surprise being 12.3%. The consensus estimate for current-year revenues is pegged at $5.9 billion, suggesting 9.5% year-over-year growth.
The Zacks Consensus Estimate for Fresenius Medical Care’s current-year earnings of $2.23 per share has witnessed four upward revisions in the past 60 days against no movement in the opposite direction. Fresenius Medical Care beat earnings estimates in three of the trailing four quarters and met once, with the average surprise being 6.6%. The consensus estimate for current-year revenues is pegged at $21.9 billion, suggesting 4.8% year-over-year growth.
The Zacks Consensus Estimate for Doximity’s current-year earnings of $1.46 per share has witnessed one upward revision in the past 60 days against no movement in the opposite direction. Doximity beat earnings estimates in each of the trailing four quarters, with an average surprise being 29.9%. The consensus estimate for current-year revenues is pegged at $625.7 million, suggesting 9.7% year-over-year growth.