Analysts are weighing in on how Community Health Systems (NYSE:CYH), might perform in the near term. Wall Street analysts have a much less favorable assessment of the stock, with a mean rating of 2.9. The stock is rated as buy by 2 analysts, with 2 outperform and 14 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.
For the current quarter, the 22.00 analysts offering adjusted EPS forecast have a consensus estimate of $0.58 a share, which would compare with $1.14 in the same quarter last year. They have a high estimate of $0.90 and a low estimate of $0.39. Revenue for the period is expected to total nearly $4.52B from $4.88B the year-ago period.
For the full year, 21.00 Wall Street analysts forecast this company would deliver earnings of 2.24 per share, with a high estimate of $2.67 and a low estimate of $1.46. It had reported earnings per share of $3.23 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $18.12B versus 19.44B in the preceding year.
The analysts project the company to maintain annual growth of around 5.72% percent over the next five years as compared to an average growth rate of 14.88% percent expected for its competitors in the same industry.
Among the 19 analysts Data provided by Thomson/First Call tracks, the 12-month average price target for CYH is $16.55 but some analysts are projecting the price to go as high as $26.00. If the optimistic analysts are correct, that represents a 87 percent upside potential from the recent closing price of $13.89. Some sell-side analysts, particularly the bearish ones, have called for $10.50 price targets on shares of Community Health Systems (NYSE:CYH).
In the last reported results, the company reported earnings of $1.14 per share, while analysts were calling for share earnings of $0.89. It was an earnings surprise of 28.10%percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.
Community Health Systems, Inc., together with its subsidiaries, owns, leases, and operates general acute care hospitals in the United States. It offers general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric, and rehabilitation services, as well as skilled nursing and home care services. The company also provides outpatient services at urgent care centers, occupational medicine clinics, imaging centers, cancer centers, ambulatory surgery centers, and home health and hospice agencies. In addition, it offers management and consulting services to non-affiliated general acute care hospitals. As of February 15, 2016, the company owned, leased, or operated 195 affiliated hospitals in 29 states with approximately 30,000 licensed beds. Community Health Systems, Inc. was founded in 1985 and is headquartered in Franklin, Tennessee.