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Will Patient Days Drive Community Health (CYH) Q4 Earnings?
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Community Health Systems, Inc. (CYH - Free Report) is set to beat earnings estimates when it reports fourth-quarter 2021 results on Feb 16, after the closing bell.
In the last reported quarter, the leading medical care facility operator’s adjusted earnings per share of 69 cents beat the Zacks Consensus Estimate of 5 cents, primarily due to lower operating expenses.
The Zacks Consensus Estimate for fourth-quarter earnings per share of 50 cents has witnessed two upward revisions and no movement in the opposite direction. This estimate is indicative of a 47.9% decrease from the year-ago reported figure of 96 cents per share. Yet, the Zacks Consensus Estimate for revenues is pegged at $3.2 billion, suggesting an increase of 2.1% from the year-ago reported figure.
Community Health beat earnings estimates in each of the trailing four quarters, delivering an average surprise of 675%. This is depicted in the graph below.
Community Health Systems, Inc. Price and EPS Surprise
Our proven model predicts an earnings beat for Community Health this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Earnings ESP for the company is currently +23.00%. This is because the Most Accurate Estimate is pegged at 62 cents per share, higher than the Zacks Consensus Estimate of 50 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Rising admission figures are expected to boost Community Health’s fourth-quarter results. The Zacks Consensus Estimate for fourth-quarter adjusted admissions is pegged at 250,143, indicating an increase of 3.9% from the year-ago period.
Increased patient days are likely to have positioned it for an earnings beat this time around as well. The consensus mark for patient days is pegged at 575,542, signaling a 2.2% year-over-year jump.
Higher occupancy rate and average length of stay from the year-ago level are also expected to have aided the company. The consensus mark for same-store occupancy rate (average beds in service) is 55%, which suggests an increase from the year-ago level of 48.3%. Similarly, the Zacks Consensus Estimate for average length of stay for the fourth quarter is pegged at 4.82, indicating an increase from 4.80 in the prior-year period.
Yet, a lower number of beds in service and hospitals might have resulted in a year-over-year decrease in profit levels. The consensus estimate for beds in service is pegged at 11,484 for the fourth quarter, signaling a decrease from 12,421 in the year-ago period. Also, the consensus mark for the number of hospitals is pegged at 84, indicating a decline from the year-ago level of 89.
Other Stocks That Warrant a Look
Here are some other companies from the medical space that you may also want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this time around:
Vir Biotechnology, Inc. (VIR - Free Report) has an Earnings ESP of +32.05% and a Zacks Rank #1.
The Zacks Consensus Estimate for Vir Biotechnology’s bottom line for the to-be-reported quarter suggests an increase of 413.3% year over year.
Moderna, Inc. (MRNA - Free Report) has an Earnings ESP of +3.28% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Moderna’s earnings per share for the to-be-reported quarter is pegged at $9.83 per share, signaling a massive improvement from the year-ago loss of 69 cents.
Clover Health Investments, Corp. (CLOV - Free Report) has an Earnings ESP of +12.66% and is a Zacks #3 Ranked player.
The consensus estimate for Clover Health Investments’ bottom line for the to-be-reported quarter has improved 7.1% in the past 30 days.
Image: Bigstock
Will Patient Days Drive Community Health (CYH) Q4 Earnings?
Community Health Systems, Inc. (CYH - Free Report) is set to beat earnings estimates when it reports fourth-quarter 2021 results on Feb 16, after the closing bell.
In the last reported quarter, the leading medical care facility operator’s adjusted earnings per share of 69 cents beat the Zacks Consensus Estimate of 5 cents, primarily due to lower operating expenses.
Let’s see how things have shaped up prior to the fourth-quarter earnings announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for fourth-quarter earnings per share of 50 cents has witnessed two upward revisions and no movement in the opposite direction. This estimate is indicative of a 47.9% decrease from the year-ago reported figure of 96 cents per share. Yet, the Zacks Consensus Estimate for revenues is pegged at $3.2 billion, suggesting an increase of 2.1% from the year-ago reported figure.
Community Health beat earnings estimates in each of the trailing four quarters, delivering an average surprise of 675%. This is depicted in the graph below.
Community Health Systems, Inc. Price and EPS Surprise
Community Health Systems, Inc. price-eps-surprise | Community Health Systems, Inc. Quote
What the Quantitative Model Suggests
Our proven model predicts an earnings beat for Community Health this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP: Earnings ESP for the company is currently +23.00%. This is because the Most Accurate Estimate is pegged at 62 cents per share, higher than the Zacks Consensus Estimate of 50 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Community Health currently holds a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Supporting Factors
Rising admission figures are expected to boost Community Health’s fourth-quarter results. The Zacks Consensus Estimate for fourth-quarter adjusted admissions is pegged at 250,143, indicating an increase of 3.9% from the year-ago period.
Increased patient days are likely to have positioned it for an earnings beat this time around as well. The consensus mark for patient days is pegged at 575,542, signaling a 2.2% year-over-year jump.
Higher occupancy rate and average length of stay from the year-ago level are also expected to have aided the company. The consensus mark for same-store occupancy rate (average beds in service) is 55%, which suggests an increase from the year-ago level of 48.3%. Similarly, the Zacks Consensus Estimate for average length of stay for the fourth quarter is pegged at 4.82, indicating an increase from 4.80 in the prior-year period.
Yet, a lower number of beds in service and hospitals might have resulted in a year-over-year decrease in profit levels. The consensus estimate for beds in service is pegged at 11,484 for the fourth quarter, signaling a decrease from 12,421 in the year-ago period. Also, the consensus mark for the number of hospitals is pegged at 84, indicating a decline from the year-ago level of 89.
Other Stocks That Warrant a Look
Here are some other companies from the medical space that you may also want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this time around:
Vir Biotechnology, Inc. (VIR - Free Report) has an Earnings ESP of +32.05% and a Zacks Rank #1.
The Zacks Consensus Estimate for Vir Biotechnology’s bottom line for the to-be-reported quarter suggests an increase of 413.3% year over year.
Moderna, Inc. (MRNA - Free Report) has an Earnings ESP of +3.28% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Moderna’s earnings per share for the to-be-reported quarter is pegged at $9.83 per share, signaling a massive improvement from the year-ago loss of 69 cents.
Clover Health Investments, Corp. (CLOV - Free Report) has an Earnings ESP of +12.66% and is a Zacks #3 Ranked player.
The consensus estimate for Clover Health Investments’ bottom line for the to-be-reported quarter has improved 7.1% in the past 30 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.