Community Health (CYH) Q4 Earnings Beat Estimates, Soar Y/Y

Community Health Systems, Inc. (NYSE:CYH) reported adjusted income of 40 cents per share for fourth-quarter 2019. The Zacks Consensus Estimate was of a loss of 48 cents per share. The bottom line also came in against the year-ago quarter’s reported loss of 42 cents per share.

Quarterly Operational Update

In the fourth quarter, net operating revenues were $3.2 billion, surpassing the Zacks Consensus Estimate by 2.4%. However, the top line plunged 4.8% year over year due to reduced admissions.

The fourth quarter witnessed a 9.9% decrease in admissions and an 8.6% fall in adjusted admissions as well from the respective year-ago figures.

For the fourth quarter of 2019, the company delivered total adjusted EBITDA of $447 million, up 6.7% year over year.

Total operating costs and expenses of $3.1 billion were down 12.5% year over year owing to lower salaries and benefits, impairment and loss on sale of businesses, and supplies and other operating expenses.

Financial Update

Total assets at fourth-quarter end were $15.6 billion, dipping 1.6% from the level at 2018 end.

Cash and cash equivalents were up 10.2% from the level as of 2018 end.

In the fourth quarter, net cash provided by operating activities was $194 million compared with net cash used in operating activities of $165 million a year ago.

The company has long-term debt of $13.4 billion as of Dec 31, 2019, down 0.1% from the level as of Dec 31, 2018.

2020 Guidance

For the year ending Dec 31, 2020, the company expects adjusted EBITDA of $1.65-$1.8 billion. It forecasts its 2020 revenues in the range of $12.4-$12. 8 billion. Net loss attributable to the company is estimated in the band of around 60 cents to $1.30 per share. Same-store hospital annual adjusted admissions growth is assumed to be 1.5-2.5%.

Capital expenditure is predicted between $400 and $500 million whereas net cash provided by operating activities is projected between $600 and $700 million.

2019 Update

The company incurred net loss of 89 cents per share for the full year, narrower than $1.94 reported in 2018.

In 2019, adjusted EBITDA came in at 1.63 billion, down 0.9% year over year.
Net operating revenues for the year were $13.2 billion, down 6.7% year over year.

The company exited 2019 with 102 hospitals and 16,240 licensed beds.

Zacks Rank and Performance of Other Players

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

Among other players from the medical sector, having already reported fourth-quarter earnings, the bottom-line results of UnitedHealth Group Incorporated (NYSE:UNH) and HCA Healthcare, Inc. (NYSE:HCA) beat estimates while the same of Anthem Inc. (NYSE:ANTM) missed its consensus mark.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft (NASDAQ:MSFT) in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>