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Community Health (CYH) Incurs Lower Loss Than Expected in Q2

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Community Health Systems, Inc. (CYH - Free Report) reported second-quarter loss of 1 cent per share, which was considerably better than the Zacks Consensus Estimate of a loss of 43 cents. In the year ago quarter, the company has incurred a loss of 31 cents per share. Earnings suffered from a decline in patient admissions.

Community Health Systems, Inc. Price and EPS Surprise

Community Health Systems, Inc. Price and EPS Surprise | Community Health Systems, Inc. Quote

Quarterly Operational Update

In the reported quarter, net operating revenues were $3.56 billion, which surpassed the Zacks Consensus Estimate by 1.4% but decreased by 14% year over year, due to a decline in admissions.

Adjusted EBIDTA for the quarter was $411 million, down 5.5%.

The quarter witnessed a decrease of 2.1% in total admissions and 0.2% in adjusted admissions, when compared with the year-ago period, on a same store basis.

Total operating costs and expenses were $3.53 billion, 12.5% higher year over year, led by loss and impairment on sale of businesses. Also, the prior-year quarter had gained from electronic health records incentive reimbursement.

Update Financial

Total assets at quarter end were $1.6 billion, up 3.4% from the year-end 2017 level.

Cash and cash equivalents were $208 million, down 63% from year-end 2017.

Net cash provided by operating activities was $94 million, down from $503 million as of Jun 30, 2017.

The company had long-term debt of $13.7 billion as of Jun 30, 2018, down 1.5% from 2017-end level.

2018 Guidance Update

Loss from continuing operations per share is expected between $1.85 and $1.70.

Community Health estimates net operating revenues in the range of $13.9-$14.2 billion (compared with the previous range of $13.6-$13.9 billion).

The company projects adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for 2018 in the range of $1.60-$1.65 billion (versus $1.55-$1.65 billion projected earlier).

Zacks Rank and Performance of Peer Stocks

Community Health carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other players in the healthcare industry that have reported second-quarter earnings so far, the bottom line at UnitedHealth Group Inc. (UNH - Free Report) , HCA Healthcare, Inc. (HCA - Free Report) and Universal Health Services, Inc. (UHS - Free Report) beat estimates.

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