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

Select Medical (NYSE:SEM) issued its quarterly earnings data on Thursday. The health services provider reported $0.36 earnings per share for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.07), FiscalAI reports. Select Medical had a net margin of 2.68% and a return on equity of 7.26%. The company had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $1.41 billion. During the same period in the previous year, the business posted $0.44 earnings per share. The firm’s revenue was up 5.0% on a year-over-year basis. Select Medical updated its FY 2026 guidance to 1.220-1.320 EPS.

Select Medical Stock Performance

NYSE SEM traded up $0.05 during trading on Friday, hitting $16.46. The company’s stock had a trading volume of 1,636,413 shares, compared to its average volume of 1,787,153. Select Medical has a 52 week low of $11.65 and a 52 week high of $16.99. The firm has a market cap of $2.04 billion, a P/E ratio of 14.31, a price-to-earnings-growth ratio of 0.95 and a beta of 1.12. The firm has a 50 day moving average price of $16.13 and a 200 day moving average price of $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 Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, May 28th. Shareholders of record on Thursday, May 14th will be given a $0.0625 dividend. This represents a $0.25 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend is Thursday, May 14th. Select Medical’s payout ratio is currently 21.74%.

Select Medical News Summary

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

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

Institutional Investors Weigh In On Select Medical

A number of institutional investors have recently added to or reduced their stakes in the stock. 8 Knots Management LLC acquired a new position in shares of Select Medical in the 2nd quarter worth approximately $26,568,000. Millennium Management LLC boosted its stake in 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 worth $20,420,000 after purchasing an additional 1,277,233 shares in the last quarter. Adage Capital Partners GP L.L.C. acquired a new position in Select Medical in the fourth quarter worth $17,603,000. Price T Rowe Associates Inc. MD lifted its stake in shares of Select Medical by 4.3% during 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 acquiring an additional 684,695 shares during the period. Finally, Qube Research & Technologies Ltd acquired a new position in shares of Select Medical during the third quarter valued at $7,401,000. 89.48% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the company. Weiss Ratings raised Select Medical from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, February 20th. Wall Street Zen downgraded Select Medical from a “buy” rating to a “hold” rating in a research note on Monday, March 9th. Zacks Research downgraded Select Medical from a “hold” rating to a “strong sell” rating in a research note on Thursday, February 26th. Royal Bank Of Canada reissued a “sector perform” rating and issued a $16.50 price objective (down from $19.00) on shares of Select Medical in a research note on Tuesday, March 3rd. Finally, Benchmark downgraded Select Medical from a “buy” rating to a “hold” rating in a research note on Wednesday, March 4th. 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 company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $15.63.

About Select Medical

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.