Community Health (CYH) Lags Q2 Earnings, Stock Plunges
Zacks Investment Research | Aug 03, 2016 02:56AM ET
Shares of Community Health Systems Inc. (NYSE:CYH) plunged 13.1% in after-hour trading on Aug 2, following another dismal quarterly result.
Community Health reported adjusted earnings of 9 cents per share in the second quarter of 2016, which missed the Zacks Consensus Estimate of 58 cents and also plunged 92.1% from the year-ago quarter. The downside can be primarily attributed to revenue decline as well as higher operating expenses.
Net operating revenues decreased 6% to almost $4.59 billion, which, however, beat the Zacks Consensus Estimate of $4.54 billion.
On Apr 29, Community Health completed the spin-off of Quorum Health Corporation (QHC), comprising of 38 affiliated hospitals and related outpatient services in 16 states, together with Quorum Health Resources. It is a subsidiary providing management advisory and consulting services to non-affiliated hospitals.
Total admissions decreased 9.1% while adjusted admissions declined 8.5%. Outpatient revenues accounted for 57.2% of total patient revenues compared with 57% in the year-ago quarter.
On a same-store basis, net operating revenues increased 1.2% on a year over year basis. On a same-store basis, admissions decreased 2.1% and adjusted admissions declined 0.6%.
Adjusted EBITDA fell almost 27% year over year to $563 million.
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