What happened

Shares of Community Health Systems (CYH 3.54%) were up 44.9% for the week as of Friday morning, according to data provided by S&P Global Market Intelligence. The healthcare company, which operates or leases 79 acute-care hospitals in 16 states, closed last week at $5.08 a share, then rose to as high as $8.01 a share on Thursday.

Community Health has a 52-week low of $1.88 and a 52-week high of $12.51. The stock is down more than 30% over the past year but is up more than 72% in 2023.

So what

Community Health Systems released fourth-quarter and year-end financials on Wednesday. While the company's yearly numbers were down, its fourth-quarter report was somewhat positive and an improvement on third-quarter earnings. The company reported 2022 revenue of $12.21 billion, down 1.3% and representing an earnings per share (EPS) loss of $1.38, compared to positive EPS of $2.45 in 2021. It attributed the drop to lower admissions for its hospitals, combined with higher supply and labor costs.

In the fourth quarter, revenue was listed as $3.14 billion, down 2.8% year over year, while EPS was $1.50, compared to $1.15 in the same period in 2021. The company said the boost in net income was due to improved taxes and gains from the early extinguishment of debt and its CoreTrust transaction. Community Health has also trimmed its total debt to $11.6 billion, down from $12.2 billion at the end of 2021.

Community Health also issued 2023 guidance, which also helped boost the stock. It said it expected yearly revenue of between $12.2 billion and $12.6 billion, an increase of 1.5% over 2022 at the midpoint. It also said it expected a yearly EPS loss of between $0.65 and $0.05, compared to the $1.38 in EPS loss in 2022.

Now what

The stock is bouncing back, both from a stronger fourth quarter and improved 2023 guidance. It's interesting that the news of a security breach regarding patient records didn't hurt the stock's price. On Monday, in an SEC filing, Community Health said it had been notified by Forta LLC, a third-party vendor, that it had experienced a security breach affecting 1 million Community Health patients. The company said its information systems and patient care had not been affected by the attack.