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Community Health Systems (CYH) Q1 Earnings Beat Estimates

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.

Financial Update:

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.

2017 Guidance

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

Community Health Systems, Inc. Price, Consensus and EPS Surprise | Community Health Systems, Inc. Quote

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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UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report

Centene Corporation (CNC): Free Stock Analysis Report

Community Health Systems, Inc. (CYH): Free Stock Analysis Report

Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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