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CHS Stocks Fall on Declining Revenues

Analysis  |  By Jack O'Brien  
   July 27, 2018

Financial woes continue to follow CHS, as its Q2 earnings report points to declining revenues amid hospital sell-offs.

The fiscal concerns remain consistent for Community Health Systems (CHS), according to its Q2 earnings report released Thursday afternoon.

While achieving net operating revenues of $3.6 billion, CHS posted $110 million in net losses attributable to stockholders, along with $12 million lost in net cash provided by operating activities, down from $261 million during Q2 2017. CHS' admissions decreased 2.1% compared to Q2 2017, while its adjusted admissions rate slipped just 0.2% in the same period.   

CHS released its earnings report after the market closed Thursday afternoon but its maligned stock reacted negatively to the news. During early morning trading Friday, CHS' stock was down more than 9%, after finishing Thursday at $3.28 per share. 

Related: CHS CEO Pay Has Sunk Alongside Stock Price

Related: CHS Stock Sinks to New Low

Below are highlights from CHS' Q2 earnings report: 

  • CHS has operating cash flows of $60 million, down from $65 million this time last year. 
  • For the first half of 2018, CHS posted new operating revenues of $7.5 billion, down 16% year-over-year.
  • The adjusted EBITDA for Q2 was $411 million, down 5% compared to Q2 2017.  

Additional information is available in CHS' filing with the Securities and Exchange Commission.

Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.


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