Community Health Systems Warns On Q3 Results; Stock Down

(RTTNews) - Community Health Systems, Inc. (CYH) announced preliminary results for the third quarter ended September 30, 2015, with net operating revenues for the quarter expected to be $4.846 billion, compared to $4.78 billion in the year-ago quarter. Analysts had a consensus revenue estimate of $5.00 billion for the quarter. The company noted that weakness in volume and deterioration in revenue payor mix resulted in lower than anticipated net operating revenues.

The company's stock declined 15 percent to $34.25 in the after-hours trading in reaction to the company's announcement.

Community Health Systems expects income from continuing operations before taxes as reported to be $121 million, versus $133 million in the year-ago quarter. Adjusted EBITDA is expected to be approximately $661 million, compared to $750 million for the same period in 2014.

In addition, the company expects income from continuing operations, excluding expenses from the planned spin-off of Quorum Health Corp., to be $0.56 per share, versus $1.01 per share in the prior year period.

Community Health Systems said this result reflect a 1.9 percent decrease in total admissions and a 0.2 percent increase in adjusted admissions.