Community Health Systems Earnings: Here’s Why Investors are Buying Shares Now

Community Health Systems, Inc. (NYSE:CYH) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.11%.

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Community Health Systems, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 4.4% to $0.87 in the quarter versus EPS of $0.91 in the year-earlier quarter.

Revenue: Rose 14.65% to $3.78 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Community Health Systems, Inc. reported adjusted EPS income of $0.87 per share. By that measure, the company beat the mean analyst estimate of $0.85. It beat the average revenue estimate of $3.4 billion.

Quoting Management: Wayne T. Smith, chairman, president and chief executive officer of Community Health Systems, Inc. said, “Our results for the first quarter reflect the current dynamic market conditions and a more challenging operating environment for healthcare providers. Our ability to adjust to these volatile conditions and realize improvement in revenues on a same store basis reflects the strength of our operating model across all of our markets. We have also focused on managing our cost structure in line with current and expected volume trends.”

Key Stats (on next page)…

Revenue increased 15.35% from $3.28 billion in the previous quarter. EPS increased 2.35% from $0.85 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.07 to a profit $1.00. For the current year, the average estimate has moved down from a profit of $3.83 to a profit of $3.70 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)