Shares of Community Health Systems Inc. (CYH) plummeted by nearly 12% in early trading on Wednesday after the hospital operator reported a wider loss for the third quarter and lackluster revenue growth, missing Wall Street expectations.
The company reported an adjusted loss of $0.30 per share for the quarter ended September 30, larger than the $0.33 loss in the same period last year and significantly 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.
Following the disappointing results, analysts at Truist Financial maintained a "Hold" rating on Community Health's stock, reflecting concerns over the company's financial trajectory. The wider-than-expected loss and weak revenue growth appear to have sparked the sharp sell-off, as investors grew increasingly wary of the hospital operator's struggles.
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