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Community Health (CYH) Incurs Wider-Than-Expected Loss in Q1

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Community Health Systems, Inc. (CYH - Free Report) incurred adjusted loss of 53 cents per share in first-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 44 cents. Moreover, the figure came in against the last reported quarter’s adjusted income of 13 cents per share. This downside was mainly due to lower admissions in the quarter under review.

Quarterly Operational Update

In the first quarter, net operating revenues were $3.37 billion, surpassing the Zacks Consensus Estimate by 1.8%. However, the top line declined 8.4% year over year.

The first quarter witnessed a decline of 13.4% in total admissions and a 12.8% fall in adjusted admissions when compared with the year-ago period.

Total operating costs and expenses were $3.2 billion, down 8.3% year over year owing to lower salaries and benefits plus supplies, rent and amortization.

Community Health Systems, Inc. Price, Consensus and EPS Surprise

Financial Update

Total assets at first-quarter end were $16.3 billion, down 2.8% from the year-end 2018-level.

Cash and cash equivalents plunged 34.7% to $277 million from the figure as of 2018 end.

The company utilized $133 million cash from operations, down 25.5% year over year.

The company has a long-term debt of $13.4 billion as of Mar 31, 2019, dipping 0.1% from the number as of Dec 31, 2018.

Company Divestitures

In the first quarter of 2019, the company closed the divestitures of seven hospitals. Also, it entered into an agreement to sell another hospital, which is due.

2019 Guidance

Loss from continuing operations per share is now estimated between $1.50 and $1.85 while revenues are projected between $12.8 billion and $13.1 billion. Adjusted EBITDA is predicted in the range of $1.625-$1.725 billion while adjusted admission is likely to inch up 0-1%.

Zacks Rank and Performance of Other Players

Community Health carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other players from the medical sector, which already reported first-quarter earnings, the bottom-line figures of Anthem Inc. , Centene Corporation (CNC - Free Report) and UnitedHealth Group Inc. (UNH - Free Report) beat the respective Zacks Consensus Estimates.

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