Health-care services provider Community Health Systems, Inc. (CYH: Quote), which acquired by smaller rival Health Management Associates, Inc. in late January, reported Tuesday a profit for the fourth quarter that more than halved from last year, reflecting higher impairments and charges as well as a revenue drop amid a decline in admissions. <\/p>\n
Adjusted earnings per share significantly missed analysts' expectations, while quarterly revenues matched their estimates. The company also provided earnings and revenue guidance for the full-year 2014, in line with Street view. <\/p>\n
The company completed its $7.6 billion cash and stock deal to acquire Health Management Associates on January 27, which was agreed upon on July 30, 2013. <\/p>\n
\"Our financial and operating results for the fourth quarter reflect a continuation of the challenging operating environment for health care providers over the past year. As we previously announced, weakness in volume, combined with higher bad debts and a less favorable payor mix, affected our operating revenues during the fourth quarter,\" Chairman and CEO Wayne Smith said in a statement. <\/p>\n
The Franklin, Tennessee-based hospitals operator reported net income of $28.18 million or $0.30 per share for the fourth quarter, sharply lower than $62.57 million or $0.69 per share in the prior-year quarter. <\/p>\n
Excluding items, adjusted income per share from continuing operations was $0.49, compared to last year's $0.85. On average, 22 analysts polled by Thomson Reuters expected earnings of $0.67 per share for the quarter. Analysts' estimates typically exclude special items. <\/p>\n
Net revenues for the quarter declined 1.4 percent to $3.23 billion from $3.28 billion in the same quarter last year, and matched eighteen Wall Street analysts' consensus estimate of $3.23 billion. <\/p>\n
Same hospital admissions decreased 10.5 percent, and adjusted hospital admissions declined 6.7 percent. <\/p>\n
Operating margins for the quarter contracted 130 basis points to 7.3 percent from last year as total costs and expenses as a percentage of total revenues increased 130 basis points. <\/p>\n
For fiscal 2013, the company reported net income of $141.20 million or $1.51 per share, lower than $265.64 million or $2.96 per share in the prior year. Excluding items, adjusted income per share from continuing operations was $2.40, compared to last year's $3.55. <\/p>\n
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Community Health Systems Adj. Profit Misses View; Guides 2014 In Line<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Health-care services provider Community Health Systems, Inc. Continue reading