There's been a major selloff in Community Health Systems, Inc. (NYSE:CYH) shares in the week since it released its third-quarter report, with the stock down 33% to US$3.99. It was a pretty bad result overall; while revenues were in line with expectations at US$3.1b, statutory losses exploded to US$2.95 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Community Health Systems

Taking into account the latest results, Community Health Systems' seven analysts currently expect revenues in 2025 to be US$12.8b, approximately in line with the last 12 months. Per-share statutory losses are expected to explode, reaching US$0.29 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$13.1b and earnings per share (EPS) of US$0.23 in 2025. The analysts have made an abrupt about-face on Community Health Systems, administering a small dip in to revenue forecasts and slashing the earnings outlook from a profit to loss.

There was no major change to the consensus price target of US$5.26, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Community Health Systems at US$6.00 per share, while the most bearish prices it at US$4.80. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2025. Historically, Community Health Systems' top line has shrunk approximately 0.3% annually over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.7% annually. So it's pretty clear that, although revenues are improving, Community Health Systems is still expected to grow slower than the industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Community Health Systems dropped from profits to a loss next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Community Health Systems analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Community Health Systems you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.