Community Health Systems Stock Gained 18% Thursday - Here's Why

Community Health Systems Inc CYH shares gained on Thursday after the company reported better-than-expected Q2 earnings.

The company reported an adjusted EPS loss of $(0.22), beating the consensus of $(0.27) and much lower than $(2.52) a year ago.

Community Health posted Q2 sales of $3.12 billion, beating the consensus of $3.04 billion.

On a same-store basis, admissions increased by 4.8%, and adjusted admissions increased by 4.9% compared to the same period in 2022.

Adjusted EBITDA was $373 million compared to $253 million a year ago.

Tim Hingtgen, chief executive officer, said, "Our continued progress in the second quarter included sequential improvements in key operating metrics, including patient volumes and net operating revenues, among others. During the quarter, we saw a further recovery in the utilization of our healthcare services..."

The company witnessed higher inpatient & outpatient volumes, increased reimbursement rates & non-patient revenue, and lower costs for contract labor, partially offset by higher costs for professional liability insurance and increased rates for outsourced medical specialists.

Price Action: CYH shares are up 18.8% at $4.92 on Thursday.