Back to top

Image: Shutterstock

Community Health's (CYH) Earnings Beat, Improve Y/Y in Q4

Read MoreHide Full Article

Community Health Systems, Inc. (CYH - Free Report) reported fourth-quarter 2021 adjusted net income of $1.15 per share, beating the Zacks Consensus Estimate by 130%. The bottom line increased 19.8% on a year-over-year basis.

CYH gained from higher revenues.

Quarterly Operational Update

Net operating revenues of $3.2 billion increased 3.7% year over year in the quarter under review. The top line missed the consensus mark by 0.9%.

In the fourth quarter, admissions and adjusted admissions dipped 7.3% and 2.1%, respectively, from the prior-year quarter’s respective figures. On a same-store basis, admissions fell 3.9% while adjusted admissions inched up 1.7% year over year.

As of Dec 31, 2021, number of licensed beds totaled 13,289, down 5.8% year over year.

Community Health’s adjusted EBITDA of $540 million was down 12.1% from the prior-year quarter’s figure.

Total operating costs and expenses of $2.8 billion rose 4.7% year over year due to other operating expenses.

In the quarter under review, interest expense, net fell 12.7% year over year to $220 million.

Financial Update

Community Health exited the fourth quarter with cash and cash equivalents of $507 million, which decreased from $1.67 billion.

As of Dec 31, 2021, total assets were $15.2 billion, down 4.9% from the 2020-end level.

As of Dec 31, 2021, Community Health’s long-term debt totaled $12.1 billion, which increased 0.1% from the 2020-end level.

For the year ended Dec 31, 2021, net cash used in operating activities of $131 million plunged from the year-ago comparable period’s net cash provided by operating activities of $2.1 billion.

Full-Year Update

For 2021, net revenues came in at $12.36 billion. This reflects an upside of 4.9% year over year. EPS for 2021 came in at $2.45 per share, comparing favorably with the year-ago quarters' 45 cents.

2022 Outlook

This year, Community Health’s net operating revenues are revised to the range of $12.6-$13.1 billion. The midpoint of the same indicates an upside of 3.9% from the year-ago quarter’s reading.

Adjusted EBITDA is estimated within $1.825-$1.975 billion.

Net income per share is anticipated to be $1-$1.50 per share.

Net cash provided by operating activities excluding the repayment of Medicare-accelerated payments is forecast between $950 million and $1100 million.

Capex is expected in the range of $500-$600 million.

Zacks Rank

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

Other Medical Sector Releases

Among other players from the medical space that have reported fourth-
quarter earnings so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and HCA Healthcare, Inc.  (HCA - Free Report) beat respective estimates.

UnitedHealth reported fourth-quarter 2021 earnings of $4.48 per share, which outpaced the Zacks Consensus Estimate by 4.2%. The bottom line increased 77.8% year over year on revenue growth.

Tenet Healthcare reported fourth-quarter 2021 adjusted net earnings of $2.70 per share, which surpassed the Zacks Consensus Estimate and rose year over year, both by 73.1%. THC’s results gained from reduced expenses and operational excellence.

HCA Healthcare's fourth-quarter 2021 adjusted earnings of $4.42 per share missed the Zacks Consensus Estimate by 2.9%. However, the bottom line improved 7% year over year on higher revenues.

HCA witnessed solid patient volumes in the quarter.
 

Published in