Community Health Systems (CYH) Stock: Falling Hard On Missed Expectations


Community Health Systems (NYSE: CYH)

Community Health Systems is having an overwhelmingly rough day in the market today, and for good reason. The company announced an update that concerned investors with regard to the coming financial results for the quarter ending September 30, 2016. Today, we’ll talk about the expectations released, how the stock reacted to the news, and what we can expect to see from CYH ahead.

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CYH Provides Financial Update

As mentioned above, Community Health Systems is having a rough day in the market after updating expectations for the most recent quarter. Here’s what we saw:

  • Earnings Per Share – In terms of earnings per share, CYH released some upsetting news. During the quarter, analysts expected that the company would generate earnings in the amount of $0.31 per share. However, the company is anticipating a loss, and a big one at that. In fact, the company said in the release that it is expecting to lose about $0.69 per share.
  • Revenue – In terms of revenue, the company’s expectations are actually positive. During the quarter, analysts expected that CYH would generate revenue in the amount of $4.25 billion. However, the company said in the statement that it is expecting for revenue to come in at $4.38 billion, topping those expectations.

While Community Health Systems is likely to produce strong revenue, earnings are a big miss. The company provided a detailed explanation as to why it is expecting to generate a loss. To read the full release, click here.

How The Stock Reacted To The News

As investors, one of the first things that we learn is that the news moves the market. This is especially true when the news surrounds financial results. Unfortunately, the news released today was overwhelmingly negative. So, it’s only natural that we’re seeing a negative response. Currently (11:52), CYH is trading at $5.68 per share after a loss of $4.35 per share, or 43.37%.

What We Can Expect To See Ahead

Moving forward, the line is becoming very gray, so to speak, with Community Health Systems. While the company is producing incredibly strong revenue, taking such a major loss is a big hit, and it will likely take some time to recover. Nonetheless, in the long run, especially from today’s lows, the outlook is relatively positive!

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