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Community Health (CYH) Q2 Earnings Miss on Lower Patient Days
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Community Health Systems, Inc. (CYH - Free Report) reported a second-quarter 2024 adjusted loss of 17 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 11 cents. However, the bottom line improved from the prior-year loss of 22 cents per share.
Net operating revenues rose 0.6% year over year to $3.14 billion in the quarter under review. The top line beat the consensus mark by 2%.
The quarterly earnings suffered from lower patient days, admissions and average length of stay. However, improved occupancy rates, reimbursement rates and lower contract labor and supplies expenses partially offset the negatives.
Community Health Systems, Inc. Price, Consensus and EPS Surprise
At the second-quarter end, the hospital count for Community Health was 71, which aligned with our estimate.
Patient days tumbled 5.7% year over year and missed our estimate by 5.1%. The average length of stay declined year over year to 4.3 days, while the occupancy rate of 50% improved 70 basis points year over year.
Admissions fell 2.8% year over year. Adjusted admissions also declined 2.4% year over year in the quarter under review. On a same-store basis, admissions and adjusted admissions improved 3% and 3.2%, respectively, from their corresponding prior-year quarter’s reported figures.
Licensed beds of CYH totaled 11,868 as of Jun 30, 2024, which indicates a decrease of 867 beds from the prior-year quarter. The reported figure missed our estimate by 0.1%.
Total operating costs and expenses rose 1.2% year over year to $2.9 billion in the second quarter, higher than our estimate of $2.8 billion. Meanwhile, net interest expenses of $216 million increased 4.3% year over year. The metric came higher than our estimate of $204.8 million.
The company reported a net loss of $13 million in the second quarter compared with $38 million in the year-ago period. Adjusted EBITDA improved 3.8% year over year to $387 million in the quarter under review primarily due to improved same-store volumes, higher net benefit of supplemental reimbursement programs, reimbursement rates and reduction in supplies and contract labor expense. The metric surpassed our estimate of $388.4 million.
Financial Update (as of Jun 30, 2024)
Community Health exited the second quarter with cash and cash equivalents of $39 million, which increased from $38 million at 2023-end. Total assets of $14.4 billion decreased from $14.5 billion at 2023-end.
Long-term debt amounted to $11.5 billion, which increased from $11.47 billion at 2023-end. Current maturities of long-term debt were $27 million.
In the second quarter of 2024, CYH generated operating cash flows of $101 million, up from $86 million in the year-ago quarter.
2024 Outlook Revised
The company raised its net operating revenue guidance between $12.5 billion and $12.7 billion for 2024, the mid-point of which indicates 0.8% increase from the 2023 figure of $12.5 billion.
Adjusted EBITDA is now estimated to be in the range of $1.52-$1.60 billion. The mid-point of the guidance implies a 7.4% rise from the 2023 figure of $1.453 billion.
Net loss per share is expected to be between 45 cents and 30 cents in 2024. Community Health reported a net loss of $1.39 per share in 2023.
Depreciation and amortization are now predicted to be in the range of $465-$480 million for 2024.
Net cash from operating activities is reaffirmed to be between $500 million and $650 million in 2024.Capital expenditures continue to be anticipated in the range of $350-$400 million. Diluted weighted-average shares outstanding are estimated to be in the range of $132-133 million.
Of the Medical sector players that have reported second-quarter 2024 results so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Elevance Health, Inc. (ELV - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) beat the Zacks Consensus Estimate.
UnitedHealth Group reported second-quarter 2024 adjusted EPS of $6.80, which beat the Zacks Consensus Estimate by 2.3%. The bottom line rose 10.7% year over year. Revenues amounted to $98.9 billion, which improved 6.4% year over year in the quarter under review on the back of strong performance in its UnitedHealthcare and Optum business lines. The top line outpaced the consensus mark of $98.7 billion.
Elevance Health reported second-quarter 2024 adjusted EPS of $10.12 per share, which outpaced the Zacks Consensus Estimate by 1.3%. The bottom line improved 12% year over year. Operating revenues of $43.2 billion dipped 0.4% year over year. However, the top line beat the consensus mark by 0.5%.
HCA Healthcare reported second-quarter 2024 adjusted EPS of $5.50, which beat the Zacks Consensus Estimate by 10.7%. The bottom line improved 28.2% year over year. Revenues amounted to $17.5 billion, which improved 10.3% year over year in the quarter under review. The top line outpaced the consensus mark by 2.2%.
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Community Health (CYH) Q2 Earnings Miss on Lower Patient Days
Community Health Systems, Inc. (CYH - Free Report) reported a second-quarter 2024 adjusted loss of 17 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 11 cents. However, the bottom line improved from the prior-year loss of 22 cents per share.
Net operating revenues rose 0.6% year over year to $3.14 billion in the quarter under review. The top line beat the consensus mark by 2%.
The quarterly earnings suffered from lower patient days, admissions and average length of stay. However, improved occupancy rates, reimbursement rates and lower contract labor and supplies expenses partially offset the negatives.
Community Health Systems, Inc. Price, Consensus and EPS Surprise
Community Health Systems, Inc. price-consensus-eps-surprise-chart | Community Health Systems, Inc. Quote
Quarterly Operational Update
At the second-quarter end, the hospital count for Community Health was 71, which aligned with our estimate.
Patient days tumbled 5.7% year over year and missed our estimate by 5.1%. The average length of stay declined year over year to 4.3 days, while the occupancy rate of 50% improved 70 basis points year over year.
Admissions fell 2.8% year over year. Adjusted admissions also declined 2.4% year over year in the quarter under review. On a same-store basis, admissions and adjusted admissions improved 3% and 3.2%, respectively, from their corresponding prior-year quarter’s reported figures.
Licensed beds of CYH totaled 11,868 as of Jun 30, 2024, which indicates a decrease of 867 beds from the prior-year quarter. The reported figure missed our estimate by 0.1%.
Total operating costs and expenses rose 1.2% year over year to $2.9 billion in the second quarter, higher than our estimate of $2.8 billion. Meanwhile, net interest expenses of $216 million increased 4.3% year over year. The metric came higher than our estimate of $204.8 million.
The company reported a net loss of $13 million in the second quarter compared with $38 million in the year-ago period. Adjusted EBITDA improved 3.8% year over year to $387 million in the quarter under review primarily due to improved same-store volumes, higher net benefit of supplemental reimbursement programs, reimbursement rates and reduction in supplies and contract labor expense. The metric surpassed our estimate of $388.4 million.
Financial Update (as of Jun 30, 2024)
Community Health exited the second quarter with cash and cash equivalents of $39 million, which increased from $38 million at 2023-end. Total assets of $14.4 billion decreased from $14.5 billion at 2023-end.
Long-term debt amounted to $11.5 billion, which increased from $11.47 billion at 2023-end. Current maturities of long-term debt were $27 million.
In the second quarter of 2024, CYH generated operating cash flows of $101 million, up from $86 million in the year-ago quarter.
2024 Outlook Revised
The company raised its net operating revenue guidance between $12.5 billion and $12.7 billion for 2024, the mid-point of which indicates 0.8% increase from the 2023 figure of $12.5 billion.
Adjusted EBITDA is now estimated to be in the range of $1.52-$1.60 billion. The mid-point of the guidance implies a 7.4% rise from the 2023 figure of $1.453 billion.
Net loss per share is expected to be between 45 cents and 30 cents in 2024. Community Health reported a net loss of $1.39 per share in 2023.
Depreciation and amortization are now predicted to be in the range of $465-$480 million for 2024.
Net cash from operating activities is reaffirmed to be between $500 million and $650 million in 2024.Capital expenditures continue to be anticipated in the range of $350-$400 million. Diluted weighted-average shares outstanding are estimated to be in the range of $132-133 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
Of the Medical sector players that have reported second-quarter 2024 results so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Elevance Health, Inc. (ELV - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) beat the Zacks Consensus Estimate.
UnitedHealth Group reported second-quarter 2024 adjusted EPS of $6.80, which beat the Zacks Consensus Estimate by 2.3%. The bottom line rose 10.7% year over year. Revenues amounted to $98.9 billion, which improved 6.4% year over year in the quarter under review on the back of strong performance in its UnitedHealthcare and Optum business lines. The top line outpaced the consensus mark of $98.7 billion.
Elevance Health reported second-quarter 2024 adjusted EPS of $10.12 per share, which outpaced the Zacks Consensus Estimate by 1.3%. The bottom line improved 12% year over year. Operating revenues of $43.2 billion dipped 0.4% year over year. However, the top line beat the consensus mark by 0.5%.
HCA Healthcare reported second-quarter 2024 adjusted EPS of $5.50, which beat the Zacks Consensus Estimate by 10.7%. The bottom line improved 28.2% year over year. Revenues amounted to $17.5 billion, which improved 10.3% year over year in the quarter under review. The top line outpaced the consensus mark by 2.2%.