Select Medical Holdings
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Select Medical Holdings beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased significantly.
Margins expanded across the board.
Select Medical Holdings reported revenue of $718.4 million. The eight analysts polled by S&P Capital IQ anticipated revenue of $689.7 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $637.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.25. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.19 per share. GAAP EPS of $0.25 for Q4 were 92% higher than the prior-year quarter's $0.13 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.6%, 70 basis points better than the prior-year quarter. Operating margin was 9.3%, 50 basis points better than the prior-year quarter. Net margin was 5.1%, 180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $719.6 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $2.89 billion. The average EPS estimate is $0.88.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 40 members out of 44 rating the stock outperform, and four members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give Select Medical Holdings a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Select Medical Holdings is outperform, with an average price target of $9.56.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.