Community Health Q1 Earnings Top on Rising Patient Volumes, Stock Up 8%

Shares of Community Health Systems, Inc. CYH have risen 8.2% since it reported first-quarter 2025 results on April 23. The quarterly results benefited from increased same-store admissions, patient days and occupancy rate. However, the upside was partially offset by elevated salaries and benefits expenses.CYH incurred a first-quarter 2025 adjusted loss of 3 cents per share, which beat the Zacks Consensus Estimate of a loss of 10 cents. Also, the bottom line narrowed from the prior-year loss of 14 cents per share. (See the Zacks Earnings Calendar to stay ahead of market-making news.)Net operating revenues rose 0.6% year over year to $3.2 billion in the quarter under review. The top line beat the consensus mark by 1.4%.Community Health Systems, Inc. Price, Consensus and EPS Surprise Community Health Systems, Inc. price-consensus-eps-surprise-chart | Community Health Systems, Inc. QuoteCYH’s Q1 Operational UpdateAt the first-quarter end, the hospital count for Community Health was 73, lower than the year-ago level of 78.Patient days tumbled 5.2% year over year to 468.37 billion and missed our model estimate of 467.4 billion. The average length of stay decreased 4.3% year over year to 4.4 days, while the occupancy rate of 56% increased from 53.9% in the year-ago quarter.Adjusted admissions declined 2.3% year over year in the quarter under review. On a same-store basis, adjusted admissions improved 2.6% from the corresponding prior-year quarter’s reported figure.CYH licensed beds totaled 10,788 as of March 31, 2025, which indicates a decrease of 9.1% from the prior-year quarter. Also, the reported figure missed our estimate by 2.2%.Total operating expenses declined 1.2% year over year to $2.88 billion in the first quarter due to low non-operating expenses but rose from our estimate of $2.86 billion. Meanwhile, net interest expenses of $219 million increased 3.8% year over year.The metric came higher than our estimate of $211.9 million.The company reported a net income of $25 million in the first quarter against a loss of $6 million in the year-ago period. Adjusted EBITDA declined 0.5% year over year to $376 million in the quarter under review, primarily due to a decrease in acuity and non-patient revenues and increased expenses for outsourced medical specialists. The metric came above our estimate of $371.9 million.CYH’s Financial Update (as of March 31, 2025)Community Health exited the first quarter with cash and cash equivalents of $431 million, which increased significantly from $37 million at 2024-end. Total assets of $13.9 billion decreased from $14.1 billion at 2024-end.Long-term debt amounted to $11.3 billion, which fell from $11.4 billion at 2024-end. Current maturities of long-term debt were $29 million.In the first quarter of 2025, CYH generated operating cash flows of $120 million, up from $96 million in the year-ago period.CYH’s 2025 GuidanceThe company earlier expected net operating revenues between $12.2 billion and $12.6 billion for 2025 compared with the 2024 figure of $12.63 billion. Adjusted EBITDA was earlier estimated to be in the range of $1.45-$1.60 billion compared with the 2024 level of $1.54 billion.Net loss per share is expected between 55 cents and breakeven in 2025.Depreciation and amortization expenses were earlier predicted in the range of $425-$445 million for 2025.Net cash from operating activities was estimated between $600 million and $700 million in 2025. Capital expenditures were anticipated in the range of $350-$400 million.CYH’s Zacks Rank & Key PicksCYH currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader medical space are Aveanna Healthcare Holdings Inc. AVAH, ANI Pharmaceuticals Inc. ANIP and BeiGene, Ltd. ONC, each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Aveanna Healthcare’s current-year earnings of 12 cents per share has witnessed one upward revision in the past month against none in the opposite direction. The consensus estimate for current-year revenues is pegged at $2.1 billion, implying 4.6% year-over-year growth.The Zacks Consensus Estimate for ANI Pharmaceuticals’ current-year earnings is pegged at $6.36 per share. ANI Pharmaceuticals beat earnings estimates in each of the trailing four quarters, with the average surprise being 17.3%. The consensus estimate for current-year revenues is pegged at $769.2 million, implying 25.2% year-over-year growth.The Zacks Consensus Estimate for BeiGene’s current-year earnings of $1.56 per share has witnessed one upward revision in the past week against no movement in the opposite direction. The consensus estimate for current-year revenues is pegged at $5.1 billion, calling for 34.7% year-over-year growth.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Community Health Systems, Inc. (CYH): Free Stock Analysis Report ANI Pharmaceuticals, Inc. (ANIP): Free Stock Analysis Report Aveanna Healthcare Holdings Inc. (AVAH): Free Stock Analysis Report BeiGene, Ltd. (ONC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks