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

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·3 min read
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Community Health Systems, Inc. CYH 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.

Community Health Systems, Inc. Price, Consensus and EPS Surprise

Community Health Systems, Inc. Price, Consensus and EPS Surprise
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

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, Tenet Healthcare Corporation THC and HCA Healthcare, Inc. HCA 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.


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