Hospital Stocks Fall On News That Major Chain Reports Disappointing Earnings
Analysts cut their ratings and stock fell for Community Health Systems after the hospital chain did not meet third-quarter earnings expectations, due to a decrease in patient admissions and in the percentage of patients with private insurance.
Bloomberg:
Hospital Chains Skid After Community Health Warns On Quarter
Community Health Systems Inc. fell 35 percent after the hospital chain’s preliminary earnings report disappointed, leading analysts to cut their ratings on the stock because of diminishing benefits from Obamacare. The shares tumbled to $26.30, the lowest closing price since August 2012. HCA Holdings Inc., the biggest U.S. hospital chain, and Tenet Healthcare Corp. also fell. (Lauerman, 10/22)
The Associated Press:
Hospital Shares Sink As Community Predicts 3Q Earnings Miss
Hospital stocks tanked Thursday after another big chain warned Wall Street that it won't meet third-quarter earnings expectations. Community Health Systems said Wednesday after markets closed that patient admissions fell about 2 percent at its established locations in the quarter, and it saw a decrease in the percentage of people covered by commercial insurance, which offers the best reimbursement. The Franklin, Tennessee, chain expects adjusted earnings for the quarter that ends Sept. 30 to be 56 cents per share. (10/22)
And Quest Diagnostics reports flat revenue -
The Wall Street Journal:
Quest Diagnostics Forecasts Soft Revenue For Year
Quest Diagnostics Inc. on Thursday said it expects revenue for the year to come in at the low end of its guidance, as the laboratory-testing company reported flat revenue in its diagnostic-information business in the third quarter. Quest narrowed its earnings guidance to a range of $4.75 to $4.80 a share, from its prior guidance of $4.70 to $4.85 a share. The company said it expects revenue to come in at the low end of its forecast of $7.49 billion and $7.57 billion. (Dulaney, 10/22)
