Q3 EPS Estimates for Select Medical Lowered by Analyst

Key Points

• Zacks Research cut its Q3 2026 EPS estimate for Select Medical to $0.22 from $0.23 and kept a Hold rating on the stock.
• Select Medical’s most recent quarterly results showed $0.36 EPS, missing expectations of $0.43, while revenue came in at $1.42 billion, slightly above estimates and up 5% year over year.
• Analyst sentiment remains cautious: the stock has an average Hold rating with a consensus price target of $15.50, while the shares last traded around $16.51.

Select Medical Holdings Corporation (NYSE:SEM - Free Report) - Equities researchers at Zacks Research decreased their Q3 2026 EPS estimates for shares of Select Medical in a research report issued to clients and investors on Thursday, May 14th. Zacks Research analyst Team now anticipates that the health services provider will earn $0.22 per share for the quarter, down from their prior estimate of $0.23. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Select Medical's current full-year earnings is $1.26 per share. Zacks Research also issued estimates for Select Medical's Q3 2027 earnings at $0.28 EPS, Q4 2027 earnings at $0.34 EPS, FY2027 earnings at $1.42 EPS and Q1 2028 earnings at $0.47 EPS.

Select Medical (NYSE:SEM - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The health services provider reported $0.36 EPS for the quarter, missing analysts' consensus estimates of $0.43 by ($0.07). The firm had revenue of $1.42 billion for the quarter, compared to analysts' expectations of $1.41 billion. Select Medical had a return on equity of 6.62% and a net margin of 2.42%.The firm's quarterly revenue was up 5.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.44 EPS. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS.

Other equities analysts also recently issued research reports about the stock. Weiss Ratings upgraded shares of Select Medical from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, February 20th. Wall Street Zen downgraded shares of Select Medical from a "buy" rating to a "hold" rating in a research report on Monday, March 9th. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $16.50 price target (down from $19.00) on shares of Select Medical in a report on Tuesday, March 3rd. Benchmark downgraded shares of Select Medical from a "buy" rating to a "hold" rating in a report on Wednesday, March 4th. Finally, Mizuho reiterated a "neutral" rating and issued a $16.50 price target (down from $17.00) on shares of Select Medical in a report on Tuesday, May 12th. One equities research analyst has rated the stock with a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $15.50.

Select Medical Stock Up 0.0%

Shares of Select Medical stock opened at $16.51 on Monday. The company has a market cap of $2.05 billion, a P/E ratio of 15.57, a PEG ratio of 0.95 and a beta of 1.02. The company has a debt-to-equity ratio of 0.88, a quick ratio of 1.15 and a current ratio of 1.15. Select Medical has a one year low of $11.65 and a one year high of $16.99. The firm has a fifty day moving average of $16.35 and a two-hundred day moving average of $15.41.

Select Medical Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, May 28th. Shareholders of record on Thursday, May 14th will be issued a dividend of $0.0625 per share. This represents a $0.25 annualized dividend and a yield of 1.5%. The ex-dividend date is Thursday, May 14th. Select Medical's dividend payout ratio (DPR) is 23.58%.

Select Medical announced that its Board of Directors has approved a share repurchase program on Thursday, February 19th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the health services provider to purchase up to 49.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Select Medical

Several hedge funds have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD increased its holdings in Select Medical by 4.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 16,606,269 shares of the health services provider's stock valued at $246,604,000 after acquiring an additional 684,695 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in Select Medical by 3.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 5,536,331 shares of the health services provider's stock valued at $90,188,000 after acquiring an additional 202,736 shares in the last quarter. State Street Corp increased its holdings in Select Medical by 1.3% during the 2nd quarter. State Street Corp now owns 4,253,793 shares of the health services provider's stock valued at $64,573,000 after acquiring an additional 55,686 shares in the last quarter. Hsbc Holdings PLC grew its holdings in shares of Select Medical by 7,554.6% during the first quarter. Hsbc Holdings PLC now owns 2,245,163 shares of the health services provider's stock worth $36,596,000 after buying an additional 2,215,832 shares in the last quarter. Finally, Western Standard LLC grew its holdings in shares of Select Medical by 95.6% during the fourth quarter. Western Standard LLC now owns 2,064,021 shares of the health services provider's stock worth $30,651,000 after buying an additional 1,008,664 shares in the last quarter. 89.48% of the stock is currently owned by hedge funds and other institutional investors.

About Select Medical

Select Medical is a leading provider of specialized healthcare services in the United States, operating through two primary business segments: Hospital Division and Outpatient Rehabilitation Division. The Hospital Division offers long-term acute care (LTAC) hospitals and inpatient rehabilitation facilities (IRFs) that serve patients recovering from complex illnesses, trauma or surgery. The Outpatient Rehabilitation Division delivers physical, occupational and speech therapy services through a network of clinic locations and home-based care programs.

Headquartered in Mechanicsburg, Pennsylvania, Select Medical was founded in 1996 and has grown through strategic partnerships, joint ventures and acquisitions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.