Select Medical (NYSE:SEM) Issues FY 2026 Earnings Guidance

Key Points

• Select Medical issued FY2026 guidance of $1.22–$1.32 EPS and $5.6–$5.8 billion in revenue, roughly matching Street estimates of $1.26 EPS and $5.7 billion revenue.
• In the most recent quarter the company missed EPS at $0.36 versus the $0.43 consensus while revenue of $1.42 billion was essentially in line with expectations.
• The board authorized a $1.0 billion share buyback (up to 49.5% of shares) and pays a quarterly dividend (annualized $0.25, ~1.5% yield); analysts maintain a consensus "Hold" rating with a $15.63 target.

Select Medical (NYSE:SEM - Get Free Report) updated its FY 2026 earnings guidance on Thursday. The company provided EPS guidance of 1.220-1.320 for the period, compared to the consensus EPS estimate of 1.260. The company issued revenue guidance of $5.6 billion-$5.8 billion, compared to the consensus revenue estimate of $5.7 billion.

Select Medical Price Performance

Shares of SEM traded down $0.06 during trading hours on Thursday, reaching $16.44. 1,671,689 shares of the stock traded hands, compared to its average volume of 1,797,812. Select Medical has a 52-week low of $11.65 and a 52-week high of $18.53. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.89. The company has a market cap of $2.04 billion, a P/E ratio of 14.29, a price-to-earnings-growth ratio of 0.94 and a beta of 1.12. The company's 50-day moving average price is $16.13 and its two-hundred day moving average price is $15.21.

Select Medical (NYSE:SEM - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The health services provider reported $0.36 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.43 by ($0.07). Select Medical had a return on equity of 7.26% and a net margin of 2.68%.The business had revenue of $1.42 billion during the quarter, compared to analysts' expectations of $1.41 billion. Select Medical has set its FY 2026 guidance at 1.220-1.320 EPS. On average, analysts anticipate that Select Medical will post 1.27 earnings per share for the current year.

Select Medical Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 12th. Shareholders of record on Monday, March 2nd were paid a $0.0625 dividend. This represents a $0.25 annualized dividend and a yield of 1.5%. The ex-dividend date was Monday, March 2nd. Select Medical's dividend payout ratio is presently 21.74%.

Select Medical declared that its board has authorized a stock buyback program on Thursday, February 19th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the health services provider to repurchase up to 49.5% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

SEM has been the subject of several recent analyst reports. Benchmark downgraded Select Medical from a "buy" rating to a "hold" rating in a research note on Wednesday, March 4th. Wall Street Zen downgraded Select Medical from a "buy" rating to a "hold" rating in a research note on Monday, March 9th. Weiss Ratings upgraded Select Medical from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, February 20th. Zacks Research downgraded Select Medical from a "hold" rating to a "strong sell" rating in a research note on Thursday, February 26th. Finally, Royal Bank Of Canada restated a "sector perform" rating and issued a $16.50 price target (down from $19.00) on shares of Select Medical in a research note on Tuesday, March 3rd. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Select Medical presently has a consensus rating of "Hold" and a consensus target price of $15.63.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Entropy Technologies LP bought a new position in shares of Select Medical during the 3rd quarter valued at approximately $177,000. Tower Research Capital LLC TRC boosted its position in shares of Select Medical by 282.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 11,639 shares of the health services provider's stock valued at $177,000 after acquiring an additional 8,596 shares during the last quarter. Canada Pension Plan Investment Board bought a new position in shares of Select Medical during the 2nd quarter valued at approximately $168,000. nVerses Capital LLC bought a new position in shares of Select Medical during the 4th quarter valued at approximately $163,000. Finally, Brooklyn Investment Group bought a new position in shares of Select Medical during the 4th quarter valued at approximately $161,000. 89.48% of the stock is currently owned by institutional investors.

Select Medical Company Profile

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.

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