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FRANKLIN, Tenn. - Community Health Systems, Inc. (NYSE:CYH) shares surged 10.4% after the hospital operator reported a surprise profit for the third quarter, easily beating analyst expectations with strong financial results.
The company posted earnings of $0.96 per share for the third quarter, dramatically outperforming analyst estimates that had projected a loss of $0.24 per share. Revenue came in at $3.09 billion, exceeding the consensus estimate of $2.99 billion and remaining essentially flat compared to the $3.09 billion reported in the same quarter last year.
On a same-store basis, the company’s performance was even stronger, with net operating revenues increasing 6.0% YoY. Admissions rose 1.3% and adjusted admissions increased 0.3% on a same-store basis compared to the third quarter of 2024.
"We were pleased with operating and financial results for the quarter, which generally met our expectations," said Kevin J. Hammons, president and interim chief executive officer of Community Health Systems. "The refinancing that we completed in August, along with completed and pending divestitures, provides additional runway and liquidity to continue executing on our strategic initiatives and further deleverage."
The company’s Adjusted EBITDA reached $376 million, up from $347 million in the same period last year. The improvement was primarily attributed to increased non-patient revenue, including $28 million from a legal settlement, higher reimbursement rates, greater benefits from supplemental reimbursement programs, and favorable changes in payor mix.
During the quarter, CYH completed a refinancing, offering $1.79 billion in 9.75% Senior Secured Notes due 2034, using the proceeds to redeem approximately 99% of its outstanding 5.625% Senior Secured Notes due 2027.
The company has continued its divestiture strategy throughout 2025, selling interests in several hospitals and recently entering an agreement to sell select assets of its ambulatory outreach business to Laboratory Corporation of America Holdings for $195 million.
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