CYH - Why Community Health Systems Shares Are Up More Than 20% Today
Revenue and income were down compared to year-ago figures, and one-time accounting charges even led the company into the red for its recently ended third quarter. But Community Health Systems (NYSE: CYH) held up better than investors expected it to during the three-month stretch ending in September, driving the stock 23.5% higher as of 2:44 p.m. ET Thursday.
Hospital operator Community Health reported revenue of just over $3 billion last quarter, down roughly 3% from last year's Q3 top line and falling just a bit short of expectations. The adjusted operating loss of $0.52 per share was also well shy of forecasts, reversing a profit of $0.69 per share for the same quarter a year earlier. But, investors are opting to see the glass as half full rather than half empty, tacitly expecting a greater impact from hurricane Ian, which ravaged Florida in September.
And there's good enough reason to celebrate these Q3 results. Although compared to a period in 2021 when COVID-19 hospitalizations were still strong, last quarter's per-hospital revenue and admissions were still relatively solid year over year, and up from the second quarter of this year. Costs are also being well contained. Notably, salaries and benefits -- the organization's single-biggest operating expense -- for the third quarter were essentially in line with year-ago levels, while spending on supplies fell on both an absolute and a relative basis.
For further details see:
Why Community Health Systems Shares Are Up More Than 20% Today