Community Health Systems, Inc. CYH reported adjusted loss of 77 cents per share in the third quarter of 2017, which was wider than the Zacks Consensus Estimate of a loss of 30 cents. Adjusted loss per share was also wider than a loss of 35 cents incurred in the year-ago quarter.
Net loss attributable to the common stockholders was $110 million, 39% wider than the net loss of $79 million in the year-ago quarter.
The company’s third-quarter results have been severely affected by hurricanes Harvey and Irma in Victoria, Texas and Florida. It estimates that these hurricanes resulted in a loss of net operating revenues together with incremental expenses directly related to hurricane response efforts of approximately $40 million.
Quarterly Operational Update
In the third quarter, net operating revenues of $3.66 billion missed the Zacks Consensus Estimate by 1.3% and decreased 16.3% year over year. On a same-store basis, net operating revenues fell 1.5% year over year.
The third quarter witnessed a 14.8% decrease in total admissions and a 15.5% fall in total adjusted admissions year over year. On a same-store basis, both admissions and adjusted admissions declined 2.3% from the year-ago quarter.
In the reported quarter, total operating expenses declined 15.5% to $3.6 billion, primarily due to lower salaries and benefits paid to employees, supplies, rent, depreciation & amortization-related expenses and other operating costs.
Community Health Systems, Inc. Price, Consensus and EPS Surprise
Community Health Systems, Inc. Price, Consensus and EPS Surprise | Community Health Systems, Inc. Quote
Financial Update
As of Sep 30, 2017, the company’s total assets declined 10% from year-end 2016 to $19.7 billion. Cash and cash equivalents increased 148% to $590 million from year-end 2016.
The company paid off a substantial portion of its debt through divestures. It had long-term debt of $13.9 billion as of Sep 30, 2017, down 6% year over year.
Total shareholders’ equity was $1.3 billion as of Sep 30, 2017, down 24% from year-end 2016.
Cash flow from operations was $11 million for the third quarter, down 36% year over year.
2017 Guidance Lowered
Loss from continuing operations per share is expected to lie within the range of $1.30-$1.20, wider than the previously guided range of a loss of 30-40 cents.
Community Health expects net operating revenues (less provision for bad debts) in the range of $15.8-$15.9 billion compared with the previously guided range of $15.85 billion to $16.05 billion.
The company projects adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for 2017 in the range of $1,675 million to $1,725 million, down from the previous guidance of $1.825-$2 million.
Weighted-average diluted shares are expected in the band of 112-112.5 million compared with the previous guidance of 112-113 million.
Zacks Rank and Performance of Other Insurers
Community Health presently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among the other firms in the medical sector that have reported third-quarter earnings so far, the bottom lines of Centene Corp. CNC, Anthem Inc ANTM and UnitedHealth Group Inc. UNH beat their respective Zacks Consensus Estimate.
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