Community Health Systems CYH unveils its next round of earnings this Wednesday, April 28. Get prepared with Benzinga's ultimate preview for Community Health Systems's Q1 earnings.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Based on management's projections, Community Health Systems analysts modeled for a loss of $0.15 per share on sales of $2.96 billion. Community Health Systems reported a loss of $1.59 when it published results during the same quarter last year. Sales in that period totaled $3.02 billion.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
If the company were to report earnings in line when it publishes results Wednesday, quarterly profit would be up 90.57%. Revenue would be down 2.15% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q4 2021 | Q3 2020 | Q2 2020 | Q1 2020 |
|---|---|---|---|---|
| EPS Estimate | 0.20 | -0.16 | -0.62 | -0.58 |
| EPS Actual | 0.96 | 0.18 | 0.85 | -1.59 |
| Revenue Estimate | 3.07 B | 2.90 B | 2.65 B | 3.17 B |
| Revenue Actual | 3.12 B | 3.13 B | 2.52 B | 3.02 B |
Stock Performance
Shares of Community Health Systems were trading at $10.47 as of April 26. Over the last 52-week period, shares are up 204.17%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Community Health Systems is scheduled to hold the call at 11:00:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
