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Community Health Systems (NYSE:CYH) released its fourth quarter report, which came positive and indicate an end to its worsening financials. This statement was released by Barclays in a note to shareholders. Q4 results indicate a run rate that makes FY2017 guidance attainable. Volume came negative but managed to meet projections. EPS projection range of $0.30 – 1.10 is above $0.61 consensus view.

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Revenues of $15.8 billion and 16.2 billion indicates 3% growth accounting lost revenue of $2 billion from divestitures. High level of debt of around $15 billion remains a considerable issue, shows 95% of enterprise value. Community Health System has a neutral rating with $7 target price.

Overall, the management is delighted with overall performance during the reported quarter, but obviously, there remains a lot of work to close. As investors are aware, last year, the company started to reshape their portfolio via the spin of Quorum and several other divestitures, realigned their divisions, consolidated back office tasks, promoted and added new leaders. All these measures were taken with the focus on enhancing performance and execution.

Community Health has achieved progress across numerous fronts, which positions them well for future growth and enhanced performance as they move through 2017. In the reported quarter as against the third quarter, the company did recorded improvement across many areas of business, and they closed the year with an exceptional quarter. Net revenue came in above expectations for the fourth quarter with revenue growth of 2% sequentially. The company recorded improved expense management sequentially across operating expense lines, and numerous expense initiatives that they are working on should assist throughout 2017.

Adjusted EBITDA margin came at 12.6%, which marked an improvement as against the performance in the previous two quarters. With additional efforts around expense management and growth ongoing, coupled with divestiture plan, they anticipate their adjusted EBITDA margin persist to improve moving forward.

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