Community Health Systems, Inc.CYH reported adjusted earnings of 8 cents per share in the first quarter of 2017, which beat the Zacks Consensus Estimate of 6 cents by 33%.
The company had incurred a loss of $1.79 per share in the first quarter, wider than a loss of 10 cents in the year-ago quarter.
Quarterly Operational Update:
In the first quarter, net operating revenue of $4.5 billion surpassed the Zacks Consensus Estimate by 3.3% but decreased 10.3% year over year.
Total admissions of 2.1 billion decreased 11.5% and adjusted admissions of 4.5 billion declined 12.5%, both on a year-over-year basis. On a same-store basis, admissions dipped 1.5% and adjusted admissions were down 1.4%, both on a year-over-year basis.
In the reported quarter, total operating expense declined 6.2% to $4.4 billion, primarily due to lower salaries and benefits paid to employees, depreciation & amortization-related expenses and other operating costs.
As of Mar 31, 2017, the company's total assets declined 13% year over year to $21.7 billion. Cash and cash equivalent grew 38% year over year to $247 million.
The company paid off a substantial portion of its debt through divestures. It now has a long-term debt of $14.7 billion as of Mar 31, 2017, down 0.7% year over year.
Total shareholders' equity was $1.43 billion as of Mar 31, 2017, down 11.5% from year-end 2016.
Cash flow from operations was $242 million at the end of the first quarter, down 17.7% year over year from $294 million.
Community Health expects net operating revenue (less provision for bad debts) in the range of $15.8 billion to $16.2 billion.
The company projects adjusted EBITDA for 2017 in the range of $2-$2.175 billion.
Weighted-average diluted shares is expected the band of $112-$113 million.
Community Health Systems, Inc. Price, Consensus and EPS Surprise
Zacks Rank and Performance of Other Insurers
Community Health presently carries a Zacks Rank #3 (Hold). 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 first-quarter earnings so far, the bottom line at Centene Corp. CNC , Quest Diagnostics Incorporated DGX and UnitedHealth Group Inc. UNH beat their respective Zacks Consensus Estimate.
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