Community Health Systems, Inc.CYH incurred adjusted loss of $1.64 per share in the third quarter of 2018, wider than the Zacks Consensus Estimate of a loss of $1 and the year-ago loss of 79 cents. The bottom line further deteriorated 108% year over year. This downside was mainly due to lower admissions in the reported quarter.
Community Health Systems, Inc. Price and EPS Surprise
Quarterly Operational Update
In the quarter under review, net operating revenues were $3.4 billion, surpassing the Zacks Consensus Estimate by 2.6%. However, the top line declined 5.9% year over year due to reduced number of hospitals, licensed beds and total admissions.
The third quarter witnessed a decrease of 12.4% in total admissions and a 12.2% fall in adjusted admissions when compared with the year-ago period.
Total operating costs and expenses were $3.3 billion, down 5.6% year over year, induced by lower salaries plus benefits and supplies.
Total assets at quarter end were $16.4 billion, down 6% from year-end 2017 level.
Cash and cash equivalents plunged 40.5% to $335 million from year-end 2017.
Cash flow from operations was $440 million for the quarter under discussion, having dropped 28.7% year over year.
The company has a long-term debt of $13.5 billion as of Sep 30, 2018, dipping 2.5% from 2017-end level.
Loss from continuing operations per share is now expected between $2.25 and $2.10, wider than the earlier expectation of $1.85-$1.70.
Community Health nudged down the low-end of its net operating revenues guidance to a range of $12.0-$14.2 billion, from the previous range of $13.9-$14.2 billion.
The company reiterated its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) projection in the range of $1.60-$1.65 billion for 2018.
Zacks Rank and Performance of Peer Stocks
Community Health carries a Zacks Rank #3 (Hold).
Some stocks worth considering from the medical sector with the perfect combination of elements to surpass estimates in the next releases are as follows:
Amgen Inc. AMGN is set to report third-quarter 2018 earnings figures on Nov 6. The stock has an Earnings ESP of +3.54% and a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Humana Inc. HUM is set to announce third-quarter 2018 earnings performance on Nov 7. The stock has an Earnings ESP of +2.22% and a Zacks Rank of 2.
Bausch Health Cos Inc. BHC has an Earnings ESP of +6.15% and a Zacks Rank of 3. The company is set to release third-quarter financial numbers on Nov 6.
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