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Community Health Systems (CYH) Q4 Earnings Beat Estimates

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

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

Financial Update:

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.

2017 Guidance

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.


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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