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

Community Health's (CYH) third-quarter earnings gain from a solid revenue stream and lower expenses.

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This story originally appeared on Zacks

Community Health Systems, Inc. CYH reported third-quarter 2021 adjusted net income of 69 cents per share, beating the Zacks Consensus Estimate of 5 cents. The bottom line increased by 283.3% on a year-over-year basis.

- Zacks

Quarterly Operational Update

Net operating revenues of $3.1 billion dipped 0.4% year over year in the quarter under review. The top line surpassed the consensus mark by 2.7%.



In the third quarter, admissions and adjusted admissions dipped 5.5% and 3.4%, respectively, from the prior-year quarter’s figures.



As of Sep 30, 2021, number of licensed beds totaled 13,000, up 0.1% year over year.



The company’s adjusted EBITDA of $482 million was up 11.8% from the prior-year quarter’s figure.



Total operating costs and expenses of $2.7 billion dipped 2.3% year over year owing to lower salaries and benefits and lower operating expenses.



In the quarter under review, interest expense, net fell 15.9% year over year to $216 million.

Financial Update

Community Health exited the third quarter with cash and cash equivalents of $1.3 billion, which decreased 22.8% from the level at 2020 end.



Total assets as of Sep 30, 2021 were $15.7 billion, down 2.1% from the 2020-end level.



As of Sep 30, 2021, the company’s long-term debt totaled $11.9 billion, which declined 0.9% from the 2020-end level.



For the nine months ended Sep 30, 2021, net cash provided by operating activities of $400 million plunged from the year-ago comparable period’s figure of $2.1 billion.

2021 Outlook

This year, the company’s net operating revenues are now revised to the range of $12.1-$12.3 billion compared with the prior guidance of $11.9-$12.3 billion.



Adjusted EBITDA is estimated within $1.7-$1.8 billion.



Net income per share is anticipated to be $1-$1.20 per share, up from the prior outlook of 60-80 cents in 2021.





Net cash provided by operating activities excluding the repayment of Medicare accelerated payments is

                                   

                                                   

forecast between $800 million and $900 million.



Capex is expected in the range of $450-$500 million.

Zacks Rank

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.

Other Medical Sector Releases

Among other players from the medical space that have reported third-

quarter earnings so far, the bottom-line results of UnitedHealth Group Incorporated UNH, Tenet Healthcare Corporation THC and  HCA Healthcare, IncHCA beat respective estimates.



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