Back to top

Image: Bigstock

Community Health's (CYH) Q3 Loss Narrower Than Expected

Read MoreHide Full Article

Community Health Systems, Inc. (CYH - Free Report) incurred adjusted loss of 29 cents per share in third-quarter 2019, narrower than the Zacks Consensus Estimate of a loss of 55 cents. The bottom line also improved from the year-ago quarterly loss of $1.64. The bottom-line result was mainly due to lower admissions in the quarter under review.

Quarterly Operational Update

In the third quarter, net operating revenues were $3.2 billion, surpassing the Zacks Consensus Estimate by 2.9%. However, the top line declined 5.9% year over year due to reduced admissions.

The third quarter witnessed a 9.2% decrease in admissions and an 8.4% fall in adjusted admissions from the respective year-ago figures.

Total operating costs and expenses were $3 billion, down 9.3% year over year owing to lower salaries and benefits plus minimal supplies as well as operating expenses.

Financial Update

Total assets at third-quarter end were $15.9 billion, up 0.2% from the level at 2018 end.

Cash and cash equivalents were down 19.9% from the level as of 2018 end.

In the third quarter, net cash used in operating activities was $74 million compared with net cash provided by operating activities of $346 million a year ago.

The company has a long-term debt of $13.3 billion as of Sep 30, 2019, down 0.8% from the level as of Dec 31, 2018.

2019 Guidance

Loss per share from continuing operations is now estimated between $1.75 and $1.85 while revenues are projected between $12.9 billion and $13.2 billion. Adjusted EBITDA is predicted in the range of $1.6-$1.65 billion while same store hospital annual adjusted admissions growth is likely to inch up 1.5-2.5%.

Capital expenditure is expected between $425 and $475 million whereas net cash provided by operating activities is projected between $500 and $550 million.

Zacks Rank and Performance of Other Players

Community Health 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 already reported third-quarter earnings, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Anthem Inc. and Centene Corporation (CNC - Free Report) topped the respective Zacks Consensus Estimate.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


UnitedHealth Group Incorporated (UNH) - free report >>

Community Health Systems, Inc. (CYH) - free report >>

Centene Corporation (CNC) - free report >>

Published in