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Community Health's (CYH) Q2 Loss Widens, Revenues Fall Y/Y

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Community Health Systems, Inc (CYH - Free Report) incurred adjusted loss of 47 cents per share in second-quarter 2019, narrower than the Zacks Consensus Estimate of a loss of 52 cents. However, the bottom line worsened from the year-ago quarter’s loss of 1 cent per share. This downside was mainly due to lower admissions in the quarter under review.

Quarterly Operational Update

In the second quarter, net operating revenues were $3.3 billion, surpassing the Zacks Consensus Estimate by 3.1%. However, the top line declined 7.3% year over year due to reduced admissions.

The second quarter witnessed an 11.5% decrease in total admissions and a 12.3% fall in adjusted admissions from the year-ago figures.

Total operating costs and expenses were $3.2 billion, down 9.5% year over year owing to lower salaries and benefits plus supplies, depreciation and amortization.

Financial Update

Total assets at second-quarter end were $16.1 billion, up 1.7% from the level at 2018 end.

Cash and cash equivalents were up 5.6% from the tally as of 2018 end.

Net cash used by operating activities soared nearly 182% year over year for the six months ended Jun 30, 2019.

The company has a long-term debt of $13.4 billion as of Jun 30, 2019, in line with the number as of Dec 31, 2018.

Company Divestitures

In the first half of 2019, the company closed the divestments of seven hospitals. Also, it entered into agreements to sell off three other hospitals, which are pending.

2019 Guidance

Loss per share from continuing operations is now estimated between $1.65 and $2 while revenues are projected between $12.9 billion and $13.2 billion. Adjusted EBITDA is predicted in the range of $1.625-$1.725 billion while adjusted admission is likely to inch up 0.5-1.5%.

Zacks Rank and Performance of Other Players

Tenet Healthcare has 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 having reported second-quarter earnings so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Anthem Inc. and Centene Corporation (CNC - Free Report) outpaced the respective Zacks Consensus Estimate.

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