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Community Health's (CYH) Earnings Beat in Q3, Improve Y/Y

Community Health Systems, Inc. CYH reported third-quarter 2020 adjusted net income of 18 cents per share, beating the Zacks Consensus Estimate of 10 cents by 80%. Notably, the bottom line rebounded from the loss of 29 cents per share reported in the prior-year quarter.

The company’s results benefited from lower expenses, partially offset by reduced patient volumes.

Quarterly Operational Update

In the third quarter, net operating revenues were $3.1 billion, trumping the Zacks Consensus Estimate by 5.9%. However, the top line dipped 3.7% year over year due to weak admissions.

The third quarter witnessed a decrease of 13% and 18% in admissions and adjusted admissions each from the respective year-ago numbers.

 

As of Sep 30, 2020, the number of licensed beds came in at 15,252, down 6.6% from the prior-year quarter.

For the third quarter, the company delivered total adjusted EBITDA of $431 million, up 11.1% year over year.

Total operating costs and expenses of $2.8 billion were down 7.2% year over year owing to lower salaries and benefits, other operating expenses, depreciation and amortization. Also, interest expenses of $257 million slid 0.8% in the third quarter.

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

Community Health Systems, Inc. price-consensus-eps-surprise-chart | Community Health Systems, Inc. Quote

Financial Update

Total assets at third-quarter end were $16.5 billion, which inched up 5.8% from the level at 2019 end.

Cash and cash equivalents of $1.8 billion compared favorably with $216 million at 2019 end.

At the end of the third quarter, net cash provided by operating activities was $2.1 billion compared with net cash provided by operating activities of $191 million in the same period of 2019.

The company has a long-term debt of $12.9 billion as of Sep 30, 2020, down 3.9% from the level as of Dec 31, 2019.

Zacks Rank

Community Health carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Medical Sector Releases

Of the medical sector players that reported third-quarter results so far, the bottom-line results of UnitedHealth Group Inc. UNH and Centene Corp. CNC beat the respective Zacks Consensus Estimate while that of HCA Healthcare, Inc. HCA missed the same.

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UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report
 
Community Health Systems, Inc. (CYH): Free Stock Analysis Report
 
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Centene Corporation (CNC): Free Stock Analysis Report
 
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