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Select Medical Holdings (SEM) Provides Guidance for 2017
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Select Medical Holdings Corporation (SEM - Free Report) recently unveiled its guidance for 2017. The company expects earnings per share between 73 cents and 91 cents on revenues of $4.4–$4.6 billion in 2017. The Zacks Consensus Estimate currently stands at 96 cents per share on revenues of $4.53 billion. These translate to a year-over-year increase of 51.95% for the bottom line and 5.73% for the top line. We expect the figures to change as analysts tweak their estimates to incorporate the guidance in their calculations.
Adjusted EBITDA is estimated to be between $540 million and $580 million in 2017. Select Medical expects operating income between $375 million and $415 million. Interest expenses are estimated to be about $173 million, while depreciation and amortization costs are expected to be $150 million in the year.
Select Medical estimates effective tax rate of about 40.0% in 2017. Subsequently, tax expenses are expected to be between $90 million and $106 million. Net income is anticipated between $135 million and $159 million. The company assumes shares outstanding to be about 133 million.
Select Medical is expected to announce its fourth-quarter and full-year 2016 results in late February. Our proven model does not conclusively show that this Zacks Rank #3 (Hold) stock will beat estimates this quarter. This is because it has an Earnings ESP of 0.00%, which makes surprise prediction difficult. The Zacks Consensus Estimate is currently pegged at 12 cents, which translates to a year-over-year decline of 43.94%. With respect to the surprise trend, the company posted negative surprises in the last two quarters.
Shares of Select Medical outperformed the Zacks categorized Health Maintenance Organization industry in the last one month. Shares of Select Medical returned 5.73% compared with the industry’s gain of 0.64%. However, the stock displayed no earnings momentum over the last two months.
Stocks to Consider
Some better-ranked health maintenance organizations are UnitedHealth Group Inc. (UNH - Free Report) , WellCare Health Plans, Inc. and Magellan Health, Inc. .
Magellan Health, a company engaged in the healthcare management business in the United States, delivered positive surprise in three of the last four quarters with an average beat of 42.58%. The stock sports Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
WellCare Health, a provider of managed care services for government-sponsored health care programs, delivered positive surprise in the last four quarters with average beat of 40.01%. The stock carries Zacks Rank #2 (Buy).
UnitedHealth Group, a diversified health and well-being company, delivered positive surprise in the last four quarters with average beat of 3.86%. The stock carries Zacks Rank #2.
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Select Medical Holdings (SEM) Provides Guidance for 2017
Select Medical Holdings Corporation (SEM - Free Report) recently unveiled its guidance for 2017. The company expects earnings per share between 73 cents and 91 cents on revenues of $4.4–$4.6 billion in 2017. The Zacks Consensus Estimate currently stands at 96 cents per share on revenues of $4.53 billion. These translate to a year-over-year increase of 51.95% for the bottom line and 5.73% for the top line. We expect the figures to change as analysts tweak their estimates to incorporate the guidance in their calculations.
Adjusted EBITDA is estimated to be between $540 million and $580 million in 2017. Select Medical expects operating income between $375 million and $415 million. Interest expenses are estimated to be about $173 million, while depreciation and amortization costs are expected to be $150 million in the year.
Select Medical estimates effective tax rate of about 40.0% in 2017. Subsequently, tax expenses are expected to be between $90 million and $106 million. Net income is anticipated between $135 million and $159 million. The company assumes shares outstanding to be about 133 million.
Select Medical is expected to announce its fourth-quarter and full-year 2016 results in late February. Our proven model does not conclusively show that this Zacks Rank #3 (Hold) stock will beat estimates this quarter. This is because it has an Earnings ESP of 0.00%, which makes surprise prediction difficult. The Zacks Consensus Estimate is currently pegged at 12 cents, which translates to a year-over-year decline of 43.94%. With respect to the surprise trend, the company posted negative surprises in the last two quarters.
Shares of Select Medical outperformed the Zacks categorized Health Maintenance Organization industry in the last one month. Shares of Select Medical returned 5.73% compared with the industry’s gain of 0.64%. However, the stock displayed no earnings momentum over the last two months.
Stocks to Consider
Some better-ranked health maintenance organizations are UnitedHealth Group Inc. (UNH - Free Report) , WellCare Health Plans, Inc. and Magellan Health, Inc. .
Magellan Health, a company engaged in the healthcare management business in the United States, delivered positive surprise in three of the last four quarters with an average beat of 42.58%. The stock sports Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
WellCare Health, a provider of managed care services for government-sponsored health care programs, delivered positive surprise in the last four quarters with average beat of 40.01%. The stock carries Zacks Rank #2 (Buy).
UnitedHealth Group, a diversified health and well-being company, delivered positive surprise in the last four quarters with average beat of 3.86%. The stock carries Zacks Rank #2.
Zacks' Top Investment Ideas for Long-Term Profit How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>