Why Community Health Systems Stock Is Soaring Today
What happened
After the hospital conglomerate reported fourth-quarter and full-year results, shares of Community Health Systems (NYSE: CYH) were up 20% as of 10:25 a.m. EST on Thursday.
So what
Here's a look at the headline numbers from the quarter:
Revenue jumped 13% to $3.453 billion. That came in slightly ahead of Wall Street's estimate.
Adjusted admissions grew 0.1%.
GAAP net loss was $328 million, or $2.91 per share.
Adjusted net loss came in at $0.42 per share. That was much higher than the $0.28-per-share adjusted loss recorded in the year-ago period, but it was better than the $0.58-per-share loss that analysts had predicted.
Here are the company's results for the full year:
Revenue fell 8% to $14.2 billion. The decline was mostly due to hospital divestitures and closures.
Net loss was $788 million, or $6.99 per share.
Adjusted net loss came in at $1.94 per share.
Image source: Getty Images.
Investors appear to be applauding the better-than-expected quarterly results.
Now what
Community Health Systems remains in a precarious position. The company is burning through capital each quarter and is rapidly shedding hospitals in an attempt to pay off its substantial debt load (which at year-end still topped $13.3 billion).
Community Health Systems might be able to eventually turn the ship around and turn into a fine investment from here. However, I'm not a fan of investing in turnaround stories.
If hospital stocks interest you, then there are other companies out there that are more deserving of your attention.
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Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
