Healthcare services company Select Medical (NYSE:SEM) will be reporting results tomorrow afternoon. Here’s what you need to know.
Select Medical beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $1.76 billion, up 5.7% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ full-year EPS guidance estimates.
Is Select Medical a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Select Medical’s revenue to decline 13.2% year on year to $1.44 billion, a reversal from the 4.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.24 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Select Medical has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.2% on average.
Looking at Select Medical’s peers in the healthcare providers & services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Encompass Health delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 1.8%, and DaVita reported revenues up 4.7%, topping estimates by 0.9%. Encompass Health traded up 1.3% following the results while DaVita was down 11.1%.
Read our full analysis of Encompass Health’s results here and DaVita’s results here.
Investors in the healthcare providers & services segment have had fairly steady hands going into earnings, with share prices down 2% on average over the last month. Select Medical is up 3.5% during the same time and is heading into earnings with an average analyst price target of $29.50 (compared to the current share price of $20).
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