Select Medical Holdings
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Select Medical Holdings missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share didn't change.
Gross margins contracted, operating margins grew, net margins dropped.
Select Medical Holdings logged revenue of $713.7 million. The eight analysts polled by S&P Capital IQ wanted to see sales of $727.7 million on the same basis. GAAP reported sales were 2.8% higher than the prior-year quarter's $694.1 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 $0.20. The eight earnings estimates compiled by S&P Capital IQ averaged $0.21 per share. GAAP EPS of $0.17 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.1%, 430 basis points worse than the prior-year quarter. Operating margin was 9.9%, 10 basis points better than the prior-year quarter. Net margin was 3.4%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $746.0 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $2.96 billion. The average EPS estimate is $1.04.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 51 members out of 54 rating the stock outperform, and three members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 11 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 hold, with an average price target of $12.75.
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