Community Health Q2 revenue falls more than expected, hurt by sale of hospitals

Overview

• U.S. hospital operator's Q2 revenue fell 9.8% yr/yr, missing analyst expectations

• Adjusted EBITDA for Q2 was a slight miss versus consensus

• Company used divestiture proceeds to repurchase $599 mln in senior secured notes

Outlook

• Company did not provide specific guidance or forecasts for the current or future periods in press release

Result Drivers

• DIVESTITURES - Co said lower revenue and Adjusted EBITDA were primarily due to the sale of hospitals and other assets

• PAYOR MIX AND SPECIALIST FEES - Co cited an unfavorable change in payor mix and higher medical specialist fees as factors reducing Adjusted EBITDA

• SAME-STORE VOLUME GROWTH - Co said same-store admissions and adjusted admissions increased, supporting same-store revenue growth

Company press release: ID:nBw7J87sQa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities services peer group is "buy."

• Wall Street's median 12-month price target for Community Health Systems Inc is $3.50, about 9% above its July 21 closing price of $3.21

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)