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Shares of Community Health Systems, Inc. CYH 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%.
Community Health Systems, Inc. Price, Consensus and EPS Surprise
Community Health Systems, Inc. price-consensus-eps-surprise-chart | Community Health Systems, Inc. Quote
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.