Community Health Systems, Inc.CYH reported adjusted earnings of 46 cents per share in the fourth quarter of 2016, which crushed the Zacks Consensus Estimate of 12 cents by 283%. The company had incurred a loss of 28 cents per share in the year-ago quarter.
For the full year, the company reported adjusted earnings of 46 cents per share that plunged 80% year over year, primarily due to lower revenues.
Quarterly Operational Update:
For the fourth quarter, net operating revenue of $4.47 billion surpassed the Zacks Consensus Estimate by 1.4% but decreased 68% year over year. For 2016, revenues came in at $18.48 billion, down 5.13% year over year.
Total admissions of 203.5 billion fell 11.7%, while adjusted admissions of 440.6 billion declined 12.7%, both on a year-over-year basis. On a same-store basis, both admissions and adjusted admissions dipped 1.4% during the fourth quarter.
In the reported quarter, net inpatient revenue accounted for 43.6% of total patient revenue, up 60 basis points (bps) from the year-ago quarter. On the other hand, net outpatient revenue accounted for 56.4% of total patient revenue, down 60 bps year over year.
Community Health Systems, Inc. Price, Consensus and EPS Surprise
As of Dec 31, 2016, the company's total assets declined 18% year over year to $21.9 billion. Cash and cash equivalent grew 29.3% year over year to $238 million.
The company paid off a substantial portion of its debts through divestures. It now has a long-term debt of $14.8 billion as of Dec 31, 2016, down 10.8% year over year.
Total shareholders' equity was $1.73 billion as of Dec 31, 2016, down from $4.1 billion at 2015 end.
Cash flow from operations was $327 million at the end of the fourth quarter, up 7% year over year from $306 million.
Community Health projects adjusted EBITDA for 2017 in the range of $2-$2.175 billion.
Capital expenditure is expected the band of $625-$775 million.
The company expects operating cash flow in the range of $1.050-$1.225 billion.
Zacks Rank and Performance of Other Insurers
Community Health currently 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 fourth-quarter earnings so far, the bottom line at Aetna Inc. AET , HCA Holdings Inc. HCA and UnitedHealth Group Inc. UNH beat their respective Zacks Consensus Estimate .
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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.
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