Select Medical (NYSE:SEM) Issues Quarterly Earnings Results, Misses Estimates By $0.07 EPS

Select Medical (NYSE:SEM) announced its quarterly earnings data 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. Select Medical had a return on equity of 6.69% and a net margin of 2.42%.The firm had revenue of $1.42 billion during the quarter, compared to analyst estimates of $1.41 billion. During the same quarter in the previous year, the business earned $0.44 earnings per share. Select Medical’s revenue for the quarter was up 5.0% compared to the same quarter last year. Select Medical updated its FY 2026 guidance to 1.220-1.320 EPS.

Select Medical Trading Up 0.3%

Shares of Select Medical stock traded up $0.05 during trading hours on Friday, hitting $16.46. The company’s stock had a trading volume of 1,658,249 shares, compared to its average volume of 1,525,489. Select Medical has a 12 month low of $11.65 and a 12 month high of $16.99. The stock has a 50 day moving average of $16.13 and a 200 day moving average of $15.22. The company has a market capitalization of $2.04 billion, a PE ratio of 14.31, a price-to-earnings-growth ratio of 0.94 and a beta of 1.02. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.04 and a quick ratio of 1.04.

Select Medical Dividend Announcement

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. The ex-dividend date is Thursday, May 14th. This represents a $0.25 annualized dividend and a yield of 1.5%. Select Medical’s payout ratio is currently 21.74%.

Select Medical declared that its board has initiated a share repurchase plan on Thursday, February 19th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the health services provider to purchase up to 49.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

Key Select Medical News

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

• Positive Sentiment: Take‑private transaction remains a near‑term catalyst (potential premium to public price) even as details and timing are debated. SEM Q1 deep dive: Margin pressures and take-private deal shape outlook
• Positive Sentiment: Board declared a quarterly cash dividend ($0.0625 per share; ex‑dividend May 14), which supports income investors and can buoy demand into the record date. Select Medical Announces Results and Cash Dividend
• Positive Sentiment: Revenue edged above expectations (Q1 revenue $1.42B, ~5% YoY growth), showing demand resilience across the business. Select Medical’s Q1 CY2026: Beats On Revenue
• Neutral Sentiment: FY‑2026 guidance was provided (EPS $1.22–1.32; revenue ~$5.6–5.8B), roughly in line with consensus — limits downside from a guidance shock but leaves little upside absent margin improvement. Select Medical Q1 Press Release and Guidance
• Negative Sentiment: Q1 EPS missed expectations ($0.36 vs. $0.43 est.), driven by margin pressure; net margin and ROE remain modest, which raises near‑term profitability concerns. Select Medical Lags Q1 Earnings Estimates
• Negative Sentiment: Two shareholder‑law‑firm probes allege potential board fiduciary breaches related to the proposed take‑private deal, adding legal and execution risk to the transaction and potentially delaying or complicating a sale. Johnson Fistel Investigates Potential Board Fiduciary Duty Breaches

Analyst Ratings Changes

SEM has been the subject of a number of recent research reports. Wall Street Zen downgraded shares of Select Medical from a “buy” rating to a “hold” rating in a research note on Monday, March 9th. Benchmark downgraded Select Medical from a “buy” rating to a “hold” rating in a research note on Wednesday, March 4th. Weiss Ratings raised 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 reissued 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 equities research 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 MarketBeat.com, Select Medical has a consensus rating of “Hold” and an average price target of $15.63.

Institutional Trading of Select Medical

A number of large investors have recently bought and sold shares of the business. 8 Knots Management LLC bought a new stake in shares of Select Medical in the second quarter valued at about $26,568,000. Millennium Management LLC lifted its holdings in shares of Select Medical by 407.9% in the third quarter. Millennium Management LLC now owns 1,590,339 shares of the health services provider’s stock valued at $20,420,000 after purchasing an additional 1,277,233 shares in the last quarter. Adage Capital Partners GP L.L.C. bought a new stake in shares of Select Medical in the fourth quarter valued at about $17,603,000. Price T Rowe Associates Inc. MD lifted its holdings in shares of Select Medical by 4.3% in the fourth 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 purchasing an additional 684,695 shares in the last quarter. Finally, Qube Research & Technologies Ltd bought a new stake in shares of Select Medical in the third quarter valued at about $7,401,000. 89.48% of the stock is 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.