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Community Health Systems (CHS) announced its Q3 results that beat expectations. EPS came-in at $1.27/share, beating estimates of a loss of $0.32/share whilst also reversing the loss of $0.30/share seen in the year ago’s period. Net operating revenues totaled $3.09bn, almost unchanged from a year ago, but better than the street’s expectations. Net income came-in at $130mn compared to a net loss of $391mn a year ago. Adjusted EBITDA stood at $376mn. As per Kevin J. Hammons, president and interim CEO, the refinancing that was completed in August, along with completed and pending divestitures, provides additional runway and liquidity to continue executing on strategic initiatives and further deleverage.
CHS’s bonds have trended higher by over 5% since mid-October. Its 4.75% 2031s are currently trading higher by nearly a points at 88 cents on the dollar, yielding 7.54%.
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