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

Select Medical (NYSE:SEM) issued its earnings results on Thursday. The health services provider reported $0.16 EPS for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.07), FiscalAI reports. Select Medical had a net margin of 2.68% and a return on equity of 7.26%. The firm had revenue of $1.40 billion during the quarter, compared to analysts’ expectations of $1.36 billion. During the same quarter in the prior year, the company earned $0.18 EPS. Select Medical’s quarterly revenue was up 6.4% on a year-over-year basis. Select Medical updated its FY 2026 guidance to 1.220-1.320 EPS.

Select Medical Stock Performance

SEM opened at $15.04 on Friday. The firm’s fifty day simple moving average is $15.31 and its two-hundred day simple moving average is $14.06. Select Medical has a 52-week low of $11.65 and a 52-week high of $19.40. The company has a market cap of $1.86 billion, a price-to-earnings ratio of 13.07, a PEG ratio of 0.56 and a beta of 1.25. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.87.

Select Medical Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Monday, March 2nd will be given a $0.0625 dividend. The ex-dividend date is Monday, March 2nd. This represents a $0.25 dividend on an annualized basis and a dividend yield of 1.7%. Select Medical’s payout ratio is 29.07%.

Select Medical announced that its Board of Directors has approved a stock repurchase program on Thursday, February 19th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the health services provider to buy up to 49.5% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s board believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Mizuho set a $17.00 price objective on shares of Select Medical in a research note on Monday, November 3rd. Wall Street Zen lowered Select Medical from a “buy” rating to a “hold” rating in a research note on Saturday. Weiss Ratings restated a “sell (d+)” rating on shares of Select Medical in a research note on Wednesday, January 21st. Finally, Benchmark reiterated a “buy” rating on shares of Select Medical in a research report on Monday, October 27th. Four analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Select Medical currently has a consensus rating of “Moderate Buy” and an average price target of $17.80.

Key Select Medical News

Here are the key news stories impacting Select Medical this week:

• Positive Sentiment: Board authorized a large share buyback — a $1.0 billion repurchase plan that could cover up to ~49.5% of outstanding shares; this signals management thinks the stock is undervalued and supports earnings per share. RTT News: Buyback
• Positive Sentiment: Board declared a quarterly cash dividend of $0.0625 per share (annualized yield ~1.7%), adding a steady return component for income-focused holders. PR Newswire: Q4 results & dividend
• Positive Sentiment: Top-line beat and operating profit rebound — Q4 revenue grew 6.4% to $1.40B (above estimates) and operating profit improved materially, showing service demand strength in key segments. QuiverQuant: Q4 results
• Neutral Sentiment: FY‑2026 guidance is roughly in line with consensus on revenue but EPS guidance (1.22–1.32) sits at the low end vs. consensus (~1.32), leaving upside limited unless margins improve. PR Newswire: Guidance
• Neutral Sentiment: Full earnings call transcript is available for details on expense drivers and segment trends — useful for investors deciding whether the EPS shortfall is temporary. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: EPS missed estimates — reported $0.16 vs. consensus ~$0.23, weighed by rising expenses and margin pressure; that miss is the primary near-term driver of the stock decline. Zacks: EPS miss
• Negative Sentiment: Weak cash flow and lower net income — operating cash fell sharply year-over-year and cash on hand declined, which raises near-term financial flexibility concerns despite the buyback plan. QuiverQuant: Cash flow & balance sheet

Institutional Investors Weigh In On Select Medical

Institutional investors have recently bought and sold shares of the company. Royal Bank of Canada raised its holdings in shares of Select Medical by 8.5% during the first quarter. Royal Bank of Canada now owns 95,771 shares of the health services provider’s stock valued at $1,599,000 after acquiring an additional 7,502 shares during the last quarter. AQR Capital Management LLC raised its stake in Select Medical by 96.6% in the 1st quarter. AQR Capital Management LLC now owns 33,894 shares of the health services provider’s stock valued at $566,000 after purchasing an additional 16,656 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Select Medical by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 64,400 shares of the health services provider’s stock valued at $1,075,000 after purchasing an additional 2,809 shares in the last quarter. Dynamic Technology Lab Private Ltd acquired a new stake in Select Medical during the 1st quarter worth $220,000. Finally, Goldman Sachs Group Inc. grew its holdings in shares of Select Medical by 25.3% during the first quarter. Goldman Sachs Group Inc. now owns 728,689 shares of the health services provider’s stock worth $12,169,000 after buying an additional 147,183 shares in the last quarter. 89.48% of the stock is currently owned by institutional investors and hedge funds.

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.