Healthcare services company Select Medical (NYSE:SEM) will be reporting earnings this Thursday after market close. Here’s what investors should know.
Select Medical missed analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $1.35 billion, up 2.4% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and full-year revenue guidance missing analysts’ expectations.
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 23.8% year on year to $1.34 billion, a reversal from the 45.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.24 per share.
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 six times over the last two years.
Looking at Select Medical’s peers in the healthcare providers & services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Tenet Healthcare delivered year-on-year revenue growth of 3.3%, beating analysts’ expectations by 2.3%, and The Ensign Group reported revenues up 18.5%, topping estimates by 0.7%. Tenet Healthcare traded down 9.4% following the results while The Ensign Group was up 8.7%.
Read our full analysis of Tenet Healthcare’s results here and The Ensign Group’s results here.
Investors in the healthcare providers & services segment have had fairly steady hands going into earnings, with share prices down 1.8% on average over the last month. Select Medical is down 6.1% during the same time and is heading into earnings with an average analyst price target of $20.50 (compared to the current share price of $14.25).
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