http://www.modernhealthcare.com/article/20161027/NEWS/161029917

Investor confidence in Community Health Systems plummeted Thursday as losses in the third quarter previewed by the company after the close of markets Wednesday caused its stock to fall nearly 50%.

CHS’ stock closed the day at $5.05 per share, down $4.98 per share or 49.65%.

In a preview of third-quarter results to be announced next week, Franklin, Tenn.-based CHS Wednesday reported a loss from continuing operations before income taxes of $83 million compared with income from continuing operations of $121 million in the third quarter of 2015.

Hospital divestitures, lower-than-expected volumes and reductions to reimbursement from state supplemental programs combined to cause revenue to fall in the quarter to $4.4 billion from $4.8 billion in the year-earlier quarter, the company said.

CHS for the third straight quarter lowered its EBITDA guidance. It is now saying that earnings before income tax, depreciation and amortization in 2016 are expected to be in a range of $2.2 billion to $2.8 billion compared with last quarter’s estimate of $2.4 billion to $2.6 billion. The chain is the nation’s second-largest investor-owned hospital company with 159 hospitals.

A CHS spokeswoman did not respond to a request for comment about Thursday’s stock losses.