Community Health Systems' stock price resumed its descent today after the giant hospital company posted net losses in the fourth quarter and missed analyst expectations.
Shares of CHS closed at $14.56 Tuesday, down $4.12 or 22%. About eight months ago, the company's shares stood at $64.
The system posted a net loss of $83 million, or 73 cents per share, in its fourth quarter, compared with net income of $100 million, or 88 cents per share, in the prior-year quarter.
Revenue in the fourth quarter fell to $4.8 billion from $4.9 billion the year earlier. The financials badly missed analyst expectations. Following the news, a number of analysts downgraded CHS stock, including Jefferies and Mizuho Securities.
For the year, the system posted net income of $158 million, or $1.38 per share, compared with net income of $92 million, or 82 cents per share, for 2014.
In a statement, CEO Wayne Smith said CHS' results were hurt by “volume weakness,” compared with a strong year-ago quarter that saw spikes in emergency department and hospital admissions during a busy flu season. The system also has seen slower-than-expected operational improvements in markets where CHS owns hospitals added two years ago as part of its Health Management Associates acquisition, Smith said.
CHS reiterated that it intends to spin off Quorum Health Corp. in the first half of 2016, with 38 affiliated hospitals and related outpatient services.
