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

Community Health Systems, Inc. (NYSE:CYH) 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 (NYSE:UNH) , Anthem Inc. (NYSE:ANTM) and Centene Corporation (NYSE:CNC) topped the respective Zacks Consensus Estimate.

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