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Community Health Systems (CYH) Down 14.8% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Community Health Systems (CYH - Free Report) . Shares have lost about 14.8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Community Health Systems due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Community Health Systems, Inc. before we dive into how investors and analysts have reacted as of late.
Community Health Q4 Earnings Beat Estimates on Lower Expenses
Community Health reported break-even earnings per share in the quarter, outperforming the Zacks Consensus Estimate of a loss of 32 cents. The bottom line improved from a loss of 42 cents in the prior-year quarter.
Net operating revenues declined 4.9% year over year to $3.1 billion in the quarter under review and missed the consensus estimate by 1.2%.
The quarterly earnings benefited from lower operating expenses. The positives were partly offset by a decrease in patient days, occupancy rate and adjusted admissions.
CYH’s Full-Year 2025 Update
Community Health Systems reported revenues of $12.5 billion, down from $12.6 billion in the prior year. The company posted adjusted operating income of $1.19 per share compared with an adjusted operating loss of $1.03 a year ago, reflecting significant bottom-line improvement.
Full-year adjusted EBITDA slipped marginally to $1.52 billion from $1.54 billion in the previous year. The total operating expenses declined to $11 billion from $12.1 billion in 2024.
CYH’s Q4 Operational Update
At the end of the fourth quarter, Community Health operated 69 hospitals, down from 76 in the year-ago period. Patient days declined 8.5% year over year, while the average length of stay decreased 2.3% to 4.2 days. Occupancy rate slipped to 49.6% from 50.5% in the prior-year quarter.
Adjusted admissions fell 6.8% year over year in the quarter under review. On a same-store basis, admissions edged down 0.3% from the corresponding prior-year period.
As of Dec. 31, 2025, CYH had 10,458 licensed beds, reflecting an 8.3% decline from the year-ago quarter. The reported figure was lower than both the Zacks Consensus Estimate and our estimate of 10,478.
Total operating expenses declined 11.1% year over year to $2.7 billion in the fourth quarter, primarily due to lower supplies, other operating expenses, lease costs and rent. The metric came in 7.5% below our estimate.
Net interest expense increased 1.8% year over year to $222 million, but was lower than our estimate of $225.4 million.
The company reported net income of $160 million in the fourth quarter compared with a net loss of $28 million in the year-ago period, reflecting improved expense management despite volume pressures. Adjusted EBITDA fell 7.7% year over year to $395 million in the quarter under review, due to lower volumes and reduced net benefit from supplemental reimbursement programs.
CYH’s Financial Update (As of Dec. 31, 2025)
Community Health exited the fourth quarter with cash and cash equivalents of $260 million, which increased significantly from $37 million at 2024-end. Total assets of $13.2 billion decreased from $14.1 billion at the end of 2024.
Long-term debt amounted to $10.4 billion, which fell from $11.4 billion at 2024-end. Current maturities of long-term debt were $16 million.
At the end of 2025, CYH generated operating cash flows of $543 million, up from $480 million in the year-ago period.
CYH’s 2026 Guidance
The company anticipates net operating revenues between $11.6 billion and $12 billion for 2026 compared with the 2025 figure of $12.5 billion. Adjusted EBITDA is estimated to be in the range of $1.34-$1.49 billion compared with the 2025 level of $1.53 billion.
The company expects the 2026 bottom line to be between a loss of 60 cents and break-even.
Depreciation and amortization expenses are predicted to be in the range of $365-$385 million for 2026.
Net cash from operating activities is estimated to be between $600 million and $700 million in 2026. Capital expenditures are anticipated in the range of $350-$400 million.
The weighted average common shares outstanding is currently estimated at around 136 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 5.78% due to these changes.
VGM Scores
At this time, Community Health Systems has a strong Growth Score of A, a score with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Community Health Systems has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Community Health Systems (CYH) Down 14.8% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Community Health Systems (CYH - Free Report) . Shares have lost about 14.8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Community Health Systems due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Community Health Systems, Inc. before we dive into how investors and analysts have reacted as of late.
Community Health Q4 Earnings Beat Estimates on Lower Expenses
Community Health reported break-even earnings per share in the quarter, outperforming the Zacks Consensus Estimate of a loss of 32 cents. The bottom line improved from a loss of 42 cents in the prior-year quarter.
Net operating revenues declined 4.9% year over year to $3.1 billion in the quarter under review and missed the consensus estimate by 1.2%.
The quarterly earnings benefited from lower operating expenses. The positives were partly offset by a decrease in patient days, occupancy rate and adjusted admissions.
CYH’s Full-Year 2025 Update
Community Health Systems reported revenues of $12.5 billion, down from $12.6 billion in the prior year. The company posted adjusted operating income of $1.19 per share compared with an adjusted operating loss of $1.03 a year ago, reflecting significant bottom-line improvement.
Full-year adjusted EBITDA slipped marginally to $1.52 billion from $1.54 billion in the previous year. The total operating expenses declined to $11 billion from $12.1 billion in 2024.
CYH’s Q4 Operational Update
At the end of the fourth quarter, Community Health operated 69 hospitals, down from 76 in the year-ago period. Patient days declined 8.5% year over year, while the average length of stay decreased 2.3% to 4.2 days. Occupancy rate slipped to 49.6% from 50.5% in the prior-year quarter.
Adjusted admissions fell 6.8% year over year in the quarter under review. On a same-store basis, admissions edged down 0.3% from the corresponding prior-year period.
As of Dec. 31, 2025, CYH had 10,458 licensed beds, reflecting an 8.3% decline from the year-ago quarter. The reported figure was lower than both the Zacks Consensus Estimate and our estimate of 10,478.
Total operating expenses declined 11.1% year over year to $2.7 billion in the fourth quarter, primarily due to lower supplies, other operating expenses, lease costs and rent. The metric came in 7.5% below our estimate.
Net interest expense increased 1.8% year over year to $222 million, but was lower than our estimate of $225.4 million.
The company reported net income of $160 million in the fourth quarter compared with a net loss of $28 million in the year-ago period, reflecting improved expense management despite volume pressures. Adjusted EBITDA fell 7.7% year over year to $395 million in the quarter under review, due to lower volumes and reduced net benefit from supplemental reimbursement programs.
CYH’s Financial Update (As of Dec. 31, 2025)
Community Health exited the fourth quarter with cash and cash equivalents of $260 million, which increased significantly from $37 million at 2024-end. Total assets of $13.2 billion decreased from $14.1 billion at the end of 2024.
Long-term debt amounted to $10.4 billion, which fell from $11.4 billion at 2024-end. Current maturities of long-term debt were $16 million.
At the end of 2025, CYH generated operating cash flows of $543 million, up from $480 million in the year-ago period.
CYH’s 2026 Guidance
The company anticipates net operating revenues between $11.6 billion and $12 billion for 2026 compared with the 2025 figure of $12.5 billion. Adjusted EBITDA is estimated to be in the range of $1.34-$1.49 billion compared with the 2025 level of $1.53 billion.
The company expects the 2026 bottom line to be between a loss of 60 cents and break-even.
Depreciation and amortization expenses are predicted to be in the range of $365-$385 million for 2026.
Net cash from operating activities is estimated to be between $600 million and $700 million in 2026. Capital expenditures are anticipated in the range of $350-$400 million.
The weighted average common shares outstanding is currently estimated at around 136 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 5.78% due to these changes.
VGM Scores
At this time, Community Health Systems has a strong Growth Score of A, a score with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Community Health Systems has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.