Community Health Systems, Inc. (CYH) has announced preliminary results for the fourth quarter and full-year 2014. The Franklin, TN-based company is scheduled to report fourth-quarter and full-year financial numbers on Feb 19.
Community Health Systems anticipates fourth-quarter net operating revenues of around $4.9 billion, in line with the current Zacks Consensus Estimate. Notably, the estimated revenues represent nearly 53% growth over $3.2 billion reported in the fourth quarter of 2013.
Fourth-quarter revenues include recently-approved California Medicaid supplemental program revenues of $35 million and additional provider taxes associated with this program of $9 million. However, certain claims worth $14 million, related to the BP oil spill in the fourth quarter of 2014, were not received during the period and are expected to impact revenues by that amount. The company expects to realize the claims in 2015.
Net operating revenues for full-year 2014 are projected at roughly $18.6 billion, compared with $12.8 billion recorded in the same period in 2013. The estimated revenue figure is slightly lower than the current Zacks Consensus Estimate of $18.7 billion.
Per the company, fourth-quarter adjusted EBITDA is estimated to grow 71% year over year to $785 million. For the full year, adjusted EBITDA is projected at roughly $2.78 billion, up 49% year over year.
On the bottom-line front, the company estimates fourth-quarter and full-year adjusted earnings to come in at $1.23 and $3.29 per share, respectively. The fourth-quarter projection is in line with the Zacks Consensus Estimate while the same for the full year is currently pegged at $3.26.
Community Health Systems also provided certain projections reflecting the company’s financial position. Net cash provided by operating activities is projected at around $1.73 billion for the year ended Dec 31, 2014, compared with $1.1 billion posted in the same period in 2013.
Total cash and cash equivalents for the year ended Dec 31, 2014, is estimated at roughly $510 million compared with $373 million as of Dec 31, 2013.
Estimate Revisions
We note that the company has witnessed certain estimate revisions over the last 7 days. For 2014, one estimate moved north over the last one week with no revision in the opposite direction, lifting the Zacks Consensus Estimate by 0.6% to its current level of $3.24. However, the Zacks Consensus Estimate for 2015 fell by a penny over the last 7 days to stand at $4.06.
Currently, Community Health Systems carries a Zacks Rank #3 (Hold).
Better-ranked stocks in medical-hospitals industry include HCA Holdings (HCA), MEDNAX (MD) and Universal Health Services (UHS). While HCA Holdings sports a Zacks Rank #1 (Strong Buy), both MEDNAX and Universal Health Services carry a Zacks Rank #2 (Buy).
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