Why Community Health Systems Stock Is Tanking Today
Shares of Community Health Systems (NYSE: CYH) had dropped by 13.8% as of 11:17 a.m. EDT on Wednesday. The big decline came after the hospital operator announced its third-quarter earnings results, along with an offer to exchange new senior notes for old notes, following market close on Tuesday.
Community Health Systems reported that its Q3 revenue fell nearly 6% year over year to $3.25 billion. The company announced a net loss of $17 million, or $0.15 per share, based on generally accepted accounting principles (GAAP). This reflected an improvement from the net loss of $325 million, or $2.88 per share, posted in the prior-year period. Community Health recorded an adjusted net loss of $0.29 per share.
The hospital chain also plans to offer a combination of $700 million in new 8% senior secured notes due in 2027 and up to $1.932 billion of 8% senior secured notes due in 2028 in exchange for its $2.632 billion worth of outstanding senior unsecured notes with a 6.875% yield, which are due in 2022.
Source Fool.com
