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Select Medical Holdings Corporation (SEM - Free Report) delivered third-quarter 2020 earnings of 56 cents per share, beating the Zacks Consensus Estimate of 30 cents by 86.7%. Moreover, the bottom line soared 69.7% year over year on the back of improved revenues.
Additionally, net operating revenues inched up 2.2% year over year to $1.42 billion owing to solid performances by its Critical Illness Recovery and Rehabilitation Hospital segments. Further, the top line surpassed the Zacks Consensus Estimate by 5.2%.
Total costs and expenses dipped 0.3% to $1.2 billion on lower cost of services.
Adjusted EBITDA increased 16.7% year over year to $213.2 million.
Select Medical Holdings Corporation Price, Consensus and EPS Surprise
Operating revenues climbed 12.2% to $519.5 million, courtesy of better patient days.
Adjusted EBITDA for the segment jumped 55.2% to $88.8 million.
Rehabilitation Hospital Segment
Operating revenues ascended 8.5% to $188.1 million, led by expanded patient days. Adjusted EBITDA was up 21.4% to $44.6 million.
Outpatient Rehabilitation
Operating revenues plunged 95.4% to $240.0 million in the third quarter due to less patient visit volume and suspension of elective surgeries.
Adjusted EBITDA of $30.6 million came against the year-ago quarter’s adjusted EBITDA of $40 million.
Concentra
Operating revenues were down 7.1% year over year to $391.9 million due to a dip in the number of visits.
Adjusted EBITDA increased 3.7% to $80.5 million.
Balance Sheet Position
At the end of the third quarter, the company had $3.3 billion of long-term debt, net of current portion, down 0.8% from the level at 2019 end.
Total equity of $1218 million surged 31.2% from the level on Dec 31, 2019.
Total cash and cash equivalents of $639.8 million were up 90.5% from the level as of Dec 31, 2019.
Cash flow provided by operating activities as of Sep 30, 2020 was $820 million compared with $266 million in the year-ago period.
Share Repurchase Update
Select Medical did not buy back shares in the third quarter.
2020 Outlook
Select Medical updated its full-year guidance after third-quarter results. The company now expects net operating revenues in the range of $5.44-$5.5 billion for the current year.
Adjusted EBITDA is expected in the band of $745-$765 million.
The company also estimates annual adjusted earnings per share within $1.61-$1.71. This excludes the gains on sales of businesses and the related tax effects.
Of the medical sector players that reported second-quarter results so far, earnings of Universal Health Services, Inc. (UHS - Free Report) and UnitedHealth Group Incorporated (UNH - Free Report) ) beat the respective Zacks Consensus Estimate while that of HCA Healthcare, Inc. (HCA - Free Report) missed the same.
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Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Select Medical's (SEM) Q3 Earnings Beat Mark, Improve Y/Y
Select Medical Holdings Corporation (SEM - Free Report) delivered third-quarter 2020 earnings of 56 cents per share, beating the Zacks Consensus Estimate of 30 cents by 86.7%. Moreover, the bottom line soared 69.7% year over year on the back of improved revenues.
Additionally, net operating revenues inched up 2.2% year over year to $1.42 billion owing to solid performances by its Critical Illness Recovery and Rehabilitation Hospital segments. Further, the top line surpassed the Zacks Consensus Estimate by 5.2%.
Total costs and expenses dipped 0.3% to $1.2 billion on lower cost of services.
Adjusted EBITDA increased 16.7% year over year to $213.2 million.
Select Medical Holdings Corporation Price, Consensus and EPS Surprise
Select Medical Holdings Corporation price-consensus-eps-surprise-chart | Select Medical Holdings Corporation Quote
Critical Illness Recovery Hospital
Operating revenues climbed 12.2% to $519.5 million, courtesy of better patient days.
Adjusted EBITDA for the segment jumped 55.2% to $88.8 million.
Rehabilitation Hospital Segment
Operating revenues ascended 8.5% to $188.1 million, led by expanded patient days. Adjusted EBITDA was up 21.4% to $44.6 million.
Outpatient Rehabilitation
Operating revenues plunged 95.4% to $240.0 million in the third quarter due to less patient visit volume and suspension of elective surgeries.
Adjusted EBITDA of $30.6 million came against the year-ago quarter’s adjusted EBITDA of $40 million.
Concentra
Operating revenues were down 7.1% year over year to $391.9 million due to a dip in the number of visits.
Adjusted EBITDA increased 3.7% to $80.5 million.
Balance Sheet Position
At the end of the third quarter, the company had $3.3 billion of long-term debt, net of current portion, down 0.8% from the level at 2019 end.
Total equity of $1218 million surged 31.2% from the level on Dec 31, 2019.
Total cash and cash equivalents of $639.8 million were up 90.5% from the level as of Dec 31, 2019.
Cash flow provided by operating activities as of Sep 30, 2020 was $820 million compared with $266 million in the year-ago period.
Share Repurchase Update
Select Medical did not buy back shares in the third quarter.
2020 Outlook
Select Medical updated its full-year guidance after third-quarter results. The company now expects net operating revenues in the range of $5.44-$5.5 billion for the current year.
Adjusted EBITDA is expected in the band of $745-$765 million.
The company also estimates annual adjusted earnings per share within $1.61-$1.71. This excludes the gains on sales of businesses and the related tax effects.
Zacks Rank
Select Medical currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the medical sector players that reported second-quarter results so far, earnings of Universal Health Services, Inc. (UHS - Free Report) and UnitedHealth Group Incorporated (UNH - Free Report) ) beat the respective Zacks Consensus Estimate while that of HCA Healthcare, Inc. (HCA - Free Report) missed the same.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>