Community Health Systems Turns To Profit In Q3

Community Health Systems Inc. (CYH) reported that its third-quarter net income attributable to common stockholders was $112 million or $0.97 per share compared to net loss of $17 million or $0.15 per share last year.

Excluding the adjusting items, net income attributable to common stockholders was $0.18 per share, compared to net loss of $0.29 per share last year. Analysts polled by Thomson Reuters expected the company to report a loss of $0.16 per share for the quarter. Analysts’ estimates typically exclude special items.

Net operating revenues for the quarter were $3.126 billion, a 3.7 percent decrease from $3.246 billion last year. Analysts expected revenue of $2.9 billion for the quarter.

On a same-store basis, net operating revenues for the quarter increased 2.9 percent from last year, primarily reflecting COVID-19 pandemic-induced changes in the mix of services provided and payor mix compared to the prior period.

In a separate press release, Community Health Systems said that its Chairman and Chief Executive Officer, Wayne Smith, will transition from Chief Executive Officer to Executive Chairman of the Board of Directors, effective January 1, 2021. Smith will retain certain strategic and other executive management responsibilities with regard to the future direction of the company.

The company plans to appoint Tim Hingtgen as its Chief Executive Officer, effective January 1, 2021. Hingtgen has served as President and Chief Operating Officer since 2016 and as a member of the Company’s Board of Directors since 2017.

CYH closed Tuesday’s regular trading at $4.39, down $0.40 or 8.35%. However, in the after-hours trading the stock gained $0.55 or 12.53%.

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