Shares of Community Health Systems Inc. (CYH) plummeted by nearly 25% on Wednesday after the hospital operator reported a wider-than-expected loss for the third quarter of 2024 and lackluster revenue growth, missing Wall Street estimates.
For the quarter ended September 30, 2024, Community Health reported an adjusted loss of $0.30 per share, significantly larger than the $0.33 loss in the same period last year and worse than analysts' average estimate of a $0.18 loss per share. Revenue rose a mere 0.1% year-over-year to $3.09 billion, narrowly beating expectations of $3.08 billion but highlighting stagnant business performance.
The company's disappointing results were impacted by lower admissions, patient days, and higher salaries and benefits expenses. While improved occupancy rates, reimbursement rates, and lower contract labor and supplies expenses provided some offset, they were not enough to prevent the wider loss.
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