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

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Shares of Community Health Systems, Inc. (CYH - Free Report) 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%.

CYH’s Q1 Operational Update

At 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 Guidance

The 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 Picks

CYH currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Aveanna Healthcare Holdings Inc. (AVAH - Free Report) , ANI Pharmaceuticals Inc. (ANIP - Free Report) and BeiGene, Ltd. (ONC - Free Report) , 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.

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