Select Medical Holdings Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Select Medical Holdings (NYS: SEM) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), Select Medical Holdings met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded. GAAP earnings per share increased.


Gross margins contracted, operating margins grew, net margins expanded.

Revenue details
 Select Medical Holdings logged revenue of $741.1 million. The one analyst polled by S&P Capital IQ expected to see sales of $741.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.28. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.25 per share. GAAP EPS of $0.28 for Q4 were 12% higher than the prior-year quarter's $0.25 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 16.3%, 430 basis points worse than the prior-year quarter. Operating margin was 10.9%, 160 basis points better than the prior-year quarter. Net margin was 5.3%, 20 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $751.9 million. On the bottom line, the average EPS estimate is $0.26.

Next year's average estimate for revenue is $2.99 billion. The average EPS estimate is $1.00.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 52 members out of 56 rating the stock outperform, and four members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 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 $12.00.

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The article Select Medical Holdings Beats Analyst Estimates on EPS originally appeared on Fool.com.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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.

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