Select Medical (NYSE:SEM) Releases Earnings Results, Misses Expectations By $0.07 EPS

Key Points

• Q4 results missed: Select Medical reported $0.36 EPS versus $0.43 expected (miss of $0.07) on $1.42 billion revenue (+5% YoY), and updated FY2026 guidance to $1.220–$1.320 EPS.
• Capital return actions: The board authorized a $1.00 billion share buyback (up to ~49.5% of shares) and the company paid a quarterly dividend of $0.0625 (annualized $0.25, ~1.5% yield; DPR ~21.7%).
• Shares were down ~0.3% to $16.44, the stock trades at a PE of 14.3 with a $2.04 billion market cap, and analysts’ consensus is a Hold rating with an average target of $15.63 after recent downgrades.

Select Medical (NYSE:SEM - Get Free Report) issued its quarterly earnings results on Thursday. The health services provider reported $0.36 EPS for the quarter, missing analysts' consensus estimates of $0.43 by ($0.07), FiscalAI reports. 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 7.26% and a net margin of 2.68%.The business's quarterly revenue was up 5.0% compared to the same quarter last year. During the same quarter last year, the firm earned $0.44 earnings per share. Select Medical updated its FY 2026 guidance to 1.220-1.320 EPS.

Select Medical Trading Down 0.3%

Shares of SEM traded down $0.06 during mid-day trading on Thursday, hitting $16.44. The company had a trading volume of 1,671,689 shares, compared to its average volume of 1,490,928. The business's 50-day simple moving average is $16.13 and its 200-day simple moving average is $15.22. The company has a quick ratio of 1.04, a current ratio of 1.04 and a debt-to-equity ratio of 0.89. Select Medical has a 1-year low of $11.65 and a 1-year high of $18.53. The stock has a market cap of $2.04 billion, a PE ratio of 14.29, a P/E/G ratio of 0.95 and a beta of 1.12.

Select Medical Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, March 12th. Investors of record on Monday, March 2nd were given a $0.0625 dividend. The ex-dividend date of this dividend was Monday, March 2nd. This represents a $0.25 annualized dividend and a dividend yield of 1.5%. Select Medical's dividend payout ratio (DPR) is currently 21.74%.

Select Medical announced that its board has initiated a stock buyback program on Thursday, February 19th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the health services provider to repurchase up to 49.5% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's board believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of SEM. Quarry LP acquired a new position in Select Medical during the fourth quarter valued at approximately $26,000. Quantbot Technologies LP acquired a new position in Select Medical during the third quarter valued at approximately $27,000. Caitong International Asset Management Co. Ltd acquired a new position in Select Medical during the fourth quarter valued at approximately $28,000. Smartleaf Asset Management LLC lifted its position in Select Medical by 37.8% during the fourth quarter. Smartleaf Asset Management LLC now owns 2,870 shares of the health services provider's stock valued at $43,000 after buying an additional 788 shares in the last quarter. Finally, Wilmington Savings Fund Society FSB lifted its position in Select Medical by 20.9% during the third quarter. Wilmington Savings Fund Society FSB now owns 5,784 shares of the health services provider's stock valued at $74,000 after buying an additional 999 shares in the last quarter. 89.48% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

SEM has been the subject of a number of recent research reports. Weiss Ratings upgraded shares of Select Medical from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, February 20th. Royal Bank Of Canada reiterated a "sector perform" rating and set 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. Zacks Research cut shares of Select Medical from a "hold" rating to a "strong sell" rating in a research report on Thursday, February 26th. Finally, Wall Street Zen cut shares of Select Medical from a "buy" rating to a "hold" rating in a research report on Monday, March 9th. One analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Select Medical presently has an average rating of "Hold" and an average target price of $15.63.

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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