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Select Medical (SEM) Expects Q2 Adjusted EBITDA to Jump 21% Y/Y
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Select Medical Corporation (SEM - Free Report) recently provided second-quarter 2023 guidance in connection with discussions regarding refinancing certain debts. Sustained top-line growth, active pursuit of buyouts and joint ventures, coupled with a strong financial stand, continue to drive Select Medical.
Select Medical expects the second quarter of 2023 net operating revenues of $1.67 billion, indicating a 5.4% rise from the year-ago figure. The dire need for effective rehabilitation services that empower individuals recovering from chronic illness and injuries to resume daily life activities is expected to provide SEM with an opportunity to capitalize on its rehabilitation hospitals.
The company expects adjusted EBITDA to be $219 million for the second quarter of 2023, indicating a rise of 21% from the year-ago figure. Improving performance in all four segments should continue aiding the upside in EBITDA. Moreover, reductions in labor costs should continue to contribute to improved EBITDA margins in the future. Select Medical anticipates diluted earnings per share (EPS) to be 61 cents in the second quarter of 2023, indicating a 41.9% rise from the year-ago EPS.
Select Medical resorts to an inorganic growth strategy, in which it acquires healthcare facilities or enters into joint ventures with several U.S. healthcare providers. Such initiatives build up capabilities, bolster the healthcare portfolio and expand the geographical presence of this leading U.S. healthcare facility operator. These growth endeavors should provide an impetus to revenues of the SEM’s Critical Illness Recovery and Rehabilitation segments, which contributed 35% and 14% to the total revenues, respectively, in 2022.
SEM’s care network comprised 105 critical illness recovery hospitals, 32 rehabilitation hospitals and 1,936 outpatient rehabilitation clinics spread across the United States and the District of Columbia as of Mar 31, 2023.
Select Medical boasts an impressive VGM Score of A. VGM Score helps identify stocks with the most attractive value, the best growth and the most promising momentum.
Zacks Rank & Price Performance
Select Medical currently carries a Zacks Rank #3 (Hold). Shares of Select Medical have gained 28.7% in the year-to-date period against the industry’s decline of 6%.
HCA Healthcare’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 9%. The Zacks Consensus Estimate for HCA’s 2023 earnings suggests an improvement of 7.2%, while the same for revenues indicates growth of 5.3% from the respective year-ago reported figures.
The consensus estimate for HCA’s 2023 earnings has moved 0.1% north in the past 60 days. Shares of HCA Healthcare have rallied 19.6% year to date.
Alcon’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters and matched once, the average beat being 8.9%. The Zacks Consensus Estimate for ALC’s 2023 earnings suggests an improvement of 17.9%, while the same for revenues indicates growth of 8.1% from the respective year-ago reported figures.
The consensus estimate for ALC’s 2023 earnings has moved 0.4% north in the past 60 days. Shares of Alcon have gained 23.2% year to date.
DexCom’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and matched once, the average surprise being 15.2%. The consensus estimate for DXCM’s 2023 earnings indicates a rise of 23%, while the same for revenues suggests an improvement of 20.1% from the corresponding year-ago reported estimates.
The consensus estimate for DXCM’s 2023 earnings has moved 0.9% north in the past 30 days. Shares of DexCom have gained 15.4% year to date.
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Select Medical (SEM) Expects Q2 Adjusted EBITDA to Jump 21% Y/Y
Select Medical Corporation (SEM - Free Report) recently provided second-quarter 2023 guidance in connection with discussions regarding refinancing certain debts. Sustained top-line growth, active pursuit of buyouts and joint ventures, coupled with a strong financial stand, continue to drive Select Medical.
Select Medical expects the second quarter of 2023 net operating revenues of $1.67 billion, indicating a 5.4% rise from the year-ago figure. The dire need for effective rehabilitation services that empower individuals recovering from chronic illness and injuries to resume daily life activities is expected to provide SEM with an opportunity to capitalize on its rehabilitation hospitals.
The company expects adjusted EBITDA to be $219 million for the second quarter of 2023, indicating a rise of 21% from the year-ago figure. Improving performance in all four segments should continue aiding the upside in EBITDA. Moreover, reductions in labor costs should continue to contribute to improved EBITDA margins in the future. Select Medical anticipates diluted earnings per share (EPS) to be 61 cents in the second quarter of 2023, indicating a 41.9% rise from the year-ago EPS.
Select Medical resorts to an inorganic growth strategy, in which it acquires healthcare facilities or enters into joint ventures with several U.S. healthcare providers. Such initiatives build up capabilities, bolster the healthcare portfolio and expand the geographical presence of this leading U.S. healthcare facility operator. These growth endeavors should provide an impetus to revenues of the SEM’s Critical Illness Recovery and Rehabilitation segments, which contributed 35% and 14% to the total revenues, respectively, in 2022.
SEM’s care network comprised 105 critical illness recovery hospitals, 32 rehabilitation hospitals and 1,936 outpatient rehabilitation clinics spread across the United States and the District of Columbia as of Mar 31, 2023.
Select Medical boasts an impressive VGM Score of A. VGM Score helps identify stocks with the most attractive value, the best growth and the most promising momentum.
Zacks Rank & Price Performance
Select Medical currently carries a Zacks Rank #3 (Hold). Shares of Select Medical have gained 28.7% in the year-to-date period against the industry’s decline of 6%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the Medical space are HCA Healthcare, Inc. (HCA - Free Report) , Alcon Inc. (ALC - Free Report) and DexCom, Inc. (DXCM - Free Report) . HCA Healthcare currently sports a Zacks Rank #1 (Strong Buy), while Alcon and DexCom carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HCA Healthcare’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 9%. The Zacks Consensus Estimate for HCA’s 2023 earnings suggests an improvement of 7.2%, while the same for revenues indicates growth of 5.3% from the respective year-ago reported figures.
The consensus estimate for HCA’s 2023 earnings has moved 0.1% north in the past 60 days. Shares of HCA Healthcare have rallied 19.6% year to date.
Alcon’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters and matched once, the average beat being 8.9%. The Zacks Consensus Estimate for ALC’s 2023 earnings suggests an improvement of 17.9%, while the same for revenues indicates growth of 8.1% from the respective year-ago reported figures.
The consensus estimate for ALC’s 2023 earnings has moved 0.4% north in the past 60 days. Shares of Alcon have gained 23.2% year to date.
DexCom’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and matched once, the average surprise being 15.2%. The consensus estimate for DXCM’s 2023 earnings indicates a rise of 23%, while the same for revenues suggests an improvement of 20.1% from the corresponding year-ago reported estimates.
The consensus estimate for DXCM’s 2023 earnings has moved 0.9% north in the past 30 days. Shares of DexCom have gained 15.4% year to date.