Healthcare services company Select Medical (NYSE: SEM) will be announcing earnings results this Thursday afternoon. Here’s what investors should know.
Select Medical beat analysts’ revenue expectations last quarter, reporting revenues of $1.40 billion, up 6.4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ full-year EPS guidance estimates and a significant miss of analysts’ EPS estimates.
Is Select Medical a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Select Medical’s revenue to grow 4.1% year on year, improving from the 2.4% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Select Medical has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Select Medical’s peers in the healthcare providers & services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Elevance Health delivered year-on-year revenue growth of 1.5%, beating analysts’ expectations by 2.4%, and UnitedHealth reported revenues up 2%, topping estimates by 1.7%. Elevance Health traded up 5.5% following the results while UnitedHealth was also up 9.3%.
Read our full analysis of Elevance Health’s results here and UnitedHealth’s results here.
There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 10.8% on average over the last month. Select Medical is up 1% during the same time and is heading into earnings with an average analyst price target of $16.63 (compared to the current share price of $16.46).
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