Community Health Systems Inc. (NYSE: CYH) Rallies On Strong Q4 Results

Community Health Systems Inc. (NYSE: CYH) was a major gainer in yesterday’s trading session. The stock rallied in the day to close with gains of 39.71%. This came after the company announced strong Q4 results that beat analysts’ estimates. It announced an EPS of $0.40 in the quarter, much higher than the analyst expectations of an EPS loss of $0.48.

The company also reported net operating revenue of $3.2 billion, a figure that beat analyst expectations by 2.4%. However, there was a slight drop in top-line revenues that dropped by 4.8% in the year. It attributed this drop to a decrease in admissions. Community Health reported that in Q4, there was a 9.9% drop in admissions.

The company also announced that in the quarter, the adjusted EBTDA of $447 million, or an increase of 6.7% compared to the previous year. The company also announced that, total assets in the quarter dropped by 1.6% to stand at $15.6 billion.  Cash and cash equivalents in the quarter increased by 10.2%. On top of that, it announced that the net cash from the company’s operating activities increased from $194 million compared to a similar quarter in the previous year when net cash stood at $165 million. The company further announced that, long-term debt decreased from 0.1% to stand at $13.4 billion.

From a look at its price action, the stock gapped up and opened the day at $5.62. It then traded between a low of $5.39 and a high of $7.27 before closing the day at $6.72. Volumes in the day stood at $18.42 million.

About Community Health Systems Inc.

Community Health Systems Inc. is an operator of acute care hospitals.  It offers general acute care services, specialty surgery and emergency rooms among others. It is based in Franklin, Tennessee.